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The Thai plastics industry can look forward to ongoing growth over 2024-2026 thanks to continuing domestic and global economic expansion, which will then support stronger demand from downstream manufacturers, including players in the packaging, autos and auto parts, electronics and electrical appliances, construction, and medical devices industries. In addition, government schemes to promote investment in the ‘new S-curve’ industries will benefit plastics manufacturers embedded in these supply chains.
The announcement of a framework for a trade agreement between Thailand and the U.S. on October 26 might be considered “good news” by many parties.
Between 2025 and 2027, the plastic industry is expected to continue its growth, driven by the global and Thai economic recovery, which will increase demand for plastics in end-use industries. Additionally, government policies promoting investment in the New S-Curve industries will support the plastic sector within the supply chains of these industries.
Following depressed conditions in 2020, domestic sales and export volume of plastic products are projected to rise by an average of 2.0-3.0% per year over 2021-2023.
Recovery in the tourism sector and the reopening of China will support domestic economic growth through 2023, and this will feed into stronger demand for petrochemical products. Ongoing expansion in both the domestic and global economies will then add to demand growth and widen spreads through 2024 and 2025.
The petrochemical industry in 2020-2022 is likely to grow in line with the demand for petrochemical products for use in the downstream industries both at home and abroad
For 2027–2028, feedstock cost pressures are expected to ease somewhat as naphtha prices decline. Meanwhile, a gradual recovery in the global economy and demand from downstream industries should support improvements in the prices and spreads of several petrochemical products. However, spread recovery will remain constrained
The ongoing recovery in the tourism sector and consumption are expected to lift the Thai economy through 2024, leading to a more positive outlook for the petrochemical industry. However, weakness in domestic manufacturing and exports may suppress a rise in prices and spreads.
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