Published on May 19, 2014
Since November 2013 in Thailand the protests over anti-government have been ongoing aiming at removing the influence of former Prime Minister Thaksin Shinawatra from Thai politics. Moreover, from last year November the country has been gripping from the political conflict as petrochemical industry of Thailand has been largely lagged. However, with the prolonged government instability, its economy is likely bear the brunt. As per the researched analyst political strife will have no impact on the industry output of Thai petrochemical.
In an annual conference held by the Asia Petrochemical Industry Conference on 15th – 16th May, 2014 was organized to uphold mutual friendship and goodwill amid the petrochemical industry players in the world as well as the sound development of the petrochemical industry in the region. According to the monthly Platts Global Petrochemical index (PGPI) which was released on the sideline of Asia Petrochemical Industry Conference (APIC) in Pattaya, Thailand, noted that in the month of April 2014 prices in the USD 3 trillion plus global petrochemicals market was down by 1% to USD 1363/mt which was down in compare to March 2014 by USD 8/mt.
As per the chairman of Petrochemical Industry Club of the Federation of Thai Industries (FTIPC), the domestic petrochemicals industry is robust and growing due to strong supporting industries. However, according to the industry experts, in Thailand the investors are confidence that the economy might take a thump, although the domestic demand for petroleum and polymer products is radically dubious to be pretentious.
On 7th May, 2014 political qualms in Thailand had heightened subsequent to the Thai Constitutional Court ruled to remove the Prime Minister Yingluck Shinawatra and nine of her senior ministers from office. Nevertheless as per the research analyst as the global demand is improving, any collision on the domestic demand that is evolving from the political deadlock will unlikely filter through to the petrochemicals industry. Further on the overall picture of petrochemical industries is improving and from the global sectors the petrochemical industry is mostly driven by overseas pricing and demand.
However according to the market players, in the year 2014 the domestic demand has been anticipated to be soft, ensuing in a forecast real GDP growth rate of 2.5% and by the mid year, a major impact on medium-term capital investment, consumer confidence and fiscal planning will been noticed on failing to establish a functioning government, moreover, taking a review of March 2014, the market players had estimated potential growth rate of Thailand that might have loosen to about 3%.
