Petrochemical producers in Europe and Asia are in survival mode as years of capacity build-up in top market China and high energy costs in Europe have depressed margins for two consecutive years, forcing firms to consolidate.
The sector's weakness is troubling for a global oil industry looking at petrochemicals to keep profits rolling in as transportation fuel demand falls in coming years with the energy transition.
Major producers in Asia and Europe are selling assets, shutting older plants, and retrofitting facilities to use cheaper raw materials such as ethane instead of naphtha to cut costs, industry executives and analysts say.
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