Asian petrochemicals market slips into bear market as recession risks increase

　　ICIS, a market information service provider for the global energy and chemical industry, said recently that the Asian petrochemical market is in trouble, as the risk of economic recession continues to increase, and the bearish sentiment on petrochemical product prices has spread across the board
.
In addition, central banks are raising interest rates to fight inflation, raising fears of a global recession
.

　　Asian polyester producers have started a new round of production cuts, but continued supply cuts have not stopped the recent price declines as overall demand slows more than supply cuts
.

　　Sentiment among Asian petrochemical buyers has been dampened by a number of factors, including higher import costs due to the depreciation of the Korean won and the Thai baht against the U.
S.
dollar
.
Rising interest rates and working capital pressures are likely to continue to weigh on downstream demand in the third quarter, further weighing on the momentum of Asian customers to replenish petrochemical inventories
.

　　Asia's dichloromethane market will face oversupply pressure, and India's booming new capacity could make it an exporter
.
In the second quarter, the spot price of methylene chloride in Asia quickly fell to the lowest level in more than a year
.

　　The Asian EPDM spot market is likely to remain bearish as demand has yet to pick up
.
According to data from ICIS, in the Southeast Asian and Indian markets that rely on imports, the price of EPDM rubber fell by 10% to 12% from May to June
.
(Pang Xiaohua)

From: China Petrochemical News