Petrochemical shortage to continue, analysts say
Petrochemical shortage to continue, analysts say
SINGAPORE (AFP): Asia will continue to suffer a shortage of
petrochemicals despite feverish efforts to increase capacity to
meet rapid economic growth in the region, industry officials and
analysts said yesterday.
Demand for petrochemicals in the region would grow by up to
nine percent annually, more than double world growth, because of
increasing Asian exports of value-added products, such as
textiles, clothing, footwear and machinery, they said.
"Asia at large will remain a net importer for petrochemical
products," said Mandava Rao of the National University of
Singapore's chemical engineering department at an international
seminar on petrochemicals here.
Rao said current shortages in Asia could not be overcome even
if the booming Southeast Asian economies moved from a demand
position of 3.1 million tons per year to an excess supply
position of 200,000 tons in three years as projected.
Asia's petrochemical market was currently a business of more
than US$30 billion annually and was going to expand more than
double to $80 billion by 2000, analysts attending the conference
said.
To satisfy growing demand, many Asian nations had built up or
were about increase their petrochemical capacities.
Major chemical producers from the west, facing relatively
slower growth rates and increasing competition at home, are also
tapping the Asian market.
Powerhouse
"With the existing (facilities) and also upon completion of
the planned facilities, Asia is going to be the chemical
powerhouse by the turn of the century," Rao said.
Anthony Kam, the Asia Pacific vice president of Mobil
Petrochemicals International Ltd., told the conference that
Asia's petrochemical industry could be more profitable if there
were enhanced regional cooperation.
"By mutual cooperation, joint development efforts and free
trade within the region, Asia's petrochemical industry can be a
world class player with a bright and profitable future," he said.
Kam noted that essential ingredients to support a globally
competitive petrochemical industry in Asia could not all be found
in one nation.
While Japan, Singapore, South Korea and Taiwan -- the well-
developed, export-oriented petrochemical producers -- had good
infrastructure and skilled workers, none of them had any
indigenous hydrocarbon resources, Kam said.
However, China, Indonesia, Thailand and Malaysia -- where
petrochemical plants were being developed rapidly -- there were
hydrocarbon resources but they lacked technology, skilled workers
and infrastructure.
Takayuki Okada, the managing director of Petrochemical Corp.
of Singapore, charged that some Asian governments had recently
introduced protectionist measures to support their newly-started
domestic petrochemical industry.
"Ultimately, the consumers are likely to find these measures
costly and burdensome although the domestic producers may find it
easier to enjoy these protection shelters rather than looking for
ways to sharpen their competitive edge," he said.