This week on petrochemicals

1. LG Chem from South Korea is strategizing to revamp its struggling petrochemical division by contemplating joint ventures with investors hailing from the Middle East. Amidst China's surge in capacity expansion, which poses challenges to the competitiveness of the upstream sector in Asia, LG Chem remains focused not on divesting businesses but on securing essential raw materials and nurturing partnerships.

2. March witnessed predominantly upward trends in crude oil prices, attributed largely to concerns regarding supply. The month concludes on a bullish note, propelled by continued attacks on Russian refineries by Ukraine, heightening worries about supply. Additionally, indications suggest that OPEC+ intends to uphold its voluntary output reduction policy until June.

3. The US economy recorded a 3.4% annualized growth rate in the fourth quarter of 2023, marking a slight increase from the revised figure of 3.2% and the initial estimate of 3.3%. Throughout 2023, the economy expanded by 2.5%, surpassing the 1.9% growth observed in 2022. However, despite this upward adjustment, the growth rate falls short of the 4.9% surge experienced in the third quarter.

4. SABIC has entered into a memorandum of understanding (MoU) with India's Pashupati Group to explore and exploit local business opportunities in recycling used plastic in India. This collaboration aims to advance Asia's transition towards circularity by meeting the rising demand for recycled goods. Leveraging its expertise in mechanical and chemical processing, Pashupati Group will complement SABIC's focus on marketing and sales efforts.

?