Petrochem exports face Chinese rivalry

Indian petrochemical exports are expected to face tough competition as the country moves to boost its oil refining and petrochemicals capacity, the head of the International Energy Agency's (IEA) oil industry and markets division warned, with global markets already reeling under rising Chinese shipments.

- Rituraj Baruah

Toril Bosoni said in an interview that currently there is severe pressure on the global petrochemical industry with China, a traditional importer of petrochemicals, expanding its domestic petchem manufacturing capacity.

She also said that domestic demand in India would be robust going ahead.

"We are seeing that this expansion and capacity in China utilizing it (oil), it's really putting pressure on other petrochemical producers in the region, that is in Europe. The European petrochemical utilization rates were the lowest they have been since the early 1970s. It's putting pressure on petrochemical producers in Asia, (South) Korea and Japan, but also in the Middle East," Bosoni said.