Petrochemical shortage to continue, analysts say<\/p>\n
SINGAPORE (AFP): Asia will continue to suffer a shortage of
\npetrochemicals despite feverish efforts to increase capacity to
\nmeet rapid economic growth in the region, industry officials and
\nanalysts said yesterday.<\/p>\n
Demand for petrochemicals in the region would grow by up to
\nnine percent annually, more than double world growth, because of
\nincreasing Asian exports of value-added products, such as
\ntextiles, clothing, footwear and machinery, they said.<\/p>\n
"Asia at large will remain a net importer for petrochemical
\nproducts," said Mandava Rao of the National University of
\nSingapore's chemical engineering department at an international
\nseminar on petrochemicals here.<\/p>\n
Rao said current shortages in Asia could not be overcome even
\nif the booming Southeast Asian economies moved from a demand
\nposition of 3.1 million tons per year to an excess supply
\nposition of 200,000 tons in three years as projected.<\/p>\n
Asia's petrochemical market was currently a business of more
\nthan US$30 billion annually and was going to expand more than
\ndouble to $80 billion by 2000, analysts attending the conference
\nsaid.<\/p>\n
To satisfy growing demand, many Asian nations had built up or
\nwere about increase their petrochemical capacities.<\/p>\n
Major chemical producers from the west, facing relatively
\nslower growth rates and increasing competition at home, are also
\ntapping the Asian market.<\/p>\n
Powerhouse<\/p>\n
"With the existing (facilities) and also upon completion of
\nthe planned facilities, Asia is going to be the chemical
\npowerhouse by the turn of the century," Rao said.<\/p>\n
Anthony Kam, the Asia Pacific vice president of Mobil
\nPetrochemicals International Ltd., told the conference that
\nAsia's petrochemical industry could be more profitable if there
\nwere enhanced regional cooperation.<\/p>\n
"By mutual cooperation, joint development efforts and free
\ntrade within the region, Asia's petrochemical industry can be a
\nworld class player with a bright and profitable future," he said.<\/p>\n
Kam noted that essential ingredients to support a globally
\ncompetitive petrochemical industry in Asia could not all be found
\nin one nation.<\/p>\n
While Japan, Singapore, South Korea and Taiwan -- the well-
\ndeveloped, export-oriented petrochemical producers -- had good
\ninfrastructure and skilled workers, none of them had any
\nindigenous hydrocarbon resources, Kam said.<\/p>\n
However, China, Indonesia, Thailand and Malaysia -- where
\npetrochemical plants were being developed rapidly -- there were
\nhydrocarbon resources but they lacked technology, skilled workers
\nand infrastructure.<\/p>\n
Takayuki Okada, the managing director of Petrochemical Corp.
\nof Singapore, charged that some Asian governments had recently
\nintroduced protectionist measures to support their newly-started
\ndomestic petrochemical industry.<\/p>\n
"Ultimately, the consumers are likely to find these measures
\ncostly and burdensome although the domestic producers may find it
\neasier to enjoy these protection shelters rather than looking for
\nways to sharpen their competitive edge," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/petrochemical-shortage-to-continue-analysts-say-1447893297",
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