Petrochemical products are an important part of the chemical industry because of the high global demand for synthetic materials. Petrochemical products are used to manufacture various products for various end-use industries. Petrochemical products are widely used in the manufacturing of various materials such as paints, coatings, adhesives and thermal insulation materials. These materials are widely used in the construction industry. Petrochemical products are an important part of the staple food in daily life. Petrochemical products are compounds made from petroleum and other hydrocarbons extracted from petroleum and natural gas. Petrochemical products are mainly used as chemical components for various materials and applications in the automotive industry.
Market Scope and Structure Analysis
Petrochemical products have become the most important element in our daily lives, revolutionizing the electronics industry and creating some of the most important scientific inventions. Facts have proved that the petrochemical industry is extremely beneficial to many other industries.
COVID-19 Impact Analysis
- The coronavirus pandemic coincides with a decline in the industry. COVID-19 has forced leaders in the petrochemical industry to rethink the prospects of the industry. Regionalized supply chain and resource productivity, chemical leaders and financial participants need to rethink their thinking and management plans.
- The COVID-19 pandemic is expected to result in a significant fall in annual average volume demand based on different segments of the markets.
- Due to pandemic, falling oil prices are driving down the prices of most petrochemical products and causing major changes in commodity prices.
- Decline in fuel demand, adjustments in the product mix of refineries, and unexpected start of large-scale conversion from crude oil to chemical products. The pandemic caused trade to cease and import opportunities were limited, further reducing overall profitability.
Top Impacting Factors
- The growth of the basic petrochemical market is driven by the growth of downstream industries and the increase in production capacity of basic petrochemicals. The production of new technologies targeting raw materials such as light crude oil and mixed crude oil is expected to have a positive impact on supply.
- The development of these technologies will enable the company to process chemicals on a refinery scale. Operating profit margins are affected by the high R&D costs associated with downstream products and regulatory approvals.
- However, due to growing concerns about the use of plastics and its environmental impact, the demand for plastic products in many key industries is gradually declining. It is expected that the possibility of an economic downturn in 2020 will increase, which will have a greater impact on the development of the petrochemical industry.
- The initial weakness in demand may lead to a decline in resource consumption, which will slow the growth of the global petrochemical industry in the second half of the forecast period.
- The expansion of the petrochemical industry is driven by the growth of by-products in the terminal industry and the increase in the production capacity of the main chemical industry.
- The petrochemical industry has grown exponentially in recent decades due to increased demand in aerospace, construction, agriculture, food and beverage, electrical and electronics, healthcare, and automobiles.
- In December 2020, in a declaration consistent with Moscow's plans to forge more potent members of the family with Beijing, the Russian authorities permitted the involvement of China's Sinopec organization in a large-scale petrochemical project.
- In July 2020, advanced Petrochemical of Saudi Arabia launched a declaration concerning their release of the development of a brand-new propane dehydrogenation (PDH) unit and a polypropylene (PP) plant in Al Jubail.
- The improvement of latest technology primarily based totally on feedstocks consisting of mild crude and blended crude is anticipated to undoubtedly effect the supply. The adoption of Crude Oil to Chemical Technology with the aid of using producers is anticipated to benefit recognition because it offers excessive yields withinside the variety of 40.0% to 45.0%.
- Industrial complexes with Crude Oil to Chemical Technology generation are being built withinside the Middle East and China and anticipated to be operational with the aid of using by 2020. The improvement of such technology will allow agencies to fabricate chemical substances on a refinery scale.
Key Benefits of the Report
- This study presents the analytical depiction of the Basic Petrochemical industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the Basic Petrochemical market share.
- The current market is quantitatively analyzed to highlight the Basic Petrochemical market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed Basic Petrochemical market analysis based on competitive intensity and how the competition will take shape in coming years
Basic Petrochemical Market Report Highlights
By End Use
Key Market Players
BASF SE, Indian Oil Corporation Limited, LyondellBasell Industries Holdings B.V., Sumitomo Chemical Company, DowDuPont, SABIC, China Petroleum & Chemical Corporation, TOTAL, China National Petroleum Corporation, Reliance Industries Limited, Chevron Phillips Chemical Company, Royal Dutch Shell PLC, BP PLC