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Asia Plastic Makers Frustrated by Delay in China Demand Recovery

  • Petrochemicals hardest hit oil-market segment this year
  • Snarled supply chains making it tougher to export to Europe

Asian plastic makers have been eagerly anticipating a post-lockdown pick-up in Chinese consumption, but weak consumer demand and high inventories mean it could be a long time coming.

Petrochemicals has been the hardest hit segment of the oil market this year. Covid-19 restrictions in manufacturing giant China decimated demand over April and May, while the invasion of Ukraine upended fuel flows and raised costs for naphtha, a major feedstock.