The chemicals industry is huge, but one segment that continues to take a backseat in the global chemical and energy debate is petrochemicals.
After bulk chemicals and specialty chemicals, petrochemicals contribute 20 percent to the overall chemical industry.
The feedstock accounts for 12 percent of the global oil demand. However, this share is expected to increase driven by a rise in demand for plastics, fertilisers, and other products.
Petrochemicals are derived from hydrocarbons such as propane, ethane, butane, or other components that are separated from crude oil and natural gas liquids. Naphtha, which is a mixture of flammable liquid hydrocarbons, is also important in the production of products made from petrochemicals.
According to Jefferies, petrochemical product demand is expected to grow at 4 percent over the next decade globally. For India, the demand is expected to grow by 8 percent during the period.
Jefferies also believes that polymer spreads are at a decade high on strong downstream demand and sustained demand should keep spreads at a higher level.
For more details, watch the video.
(Edited by: By Kanishka Sarkar)
First Published: IST