From Asia to innovation, digitalization and fertilizers, here’s a rundown of the top 10 most read industry articles over the past 12 months
#1 A 2024 and beyond outlook for the GCC chemical industry
By Valentina Olabi, Research Specialist, GPCA
Both regionally and globally, 2023 saw the chemical industry face a challenging year. After various factors contributing to slow-moving demand for chemicals globally, including the European recession, US inflation and lower-than-expected chemical demand rebound in China, the global chemical market grew by less than 1% throughout 2023, with many producers experiencing lower output.
#2 Asia polymer markets: The road ahead
By Muhamad Fadhil, SVP, Strategy and Business Development, and Matthew Rajendra, Senior Reporter, Petrochemicals, Argus
Global polyolefin markets have been unpredictable since Covid-19. The reliance on the Asian market by Gulf Cooperation Council (GCC) producers in the face of this uncertainty was both a competitive and strategic move. The growth at all cost approach in Asia enabled Middle East producers to capitalize on new markets while navigating unique challenges and risks in the region.
#3 Innovation and digital transformation: What is the link?
By Malak Al Turki, Innovation & Digital Transformation Analyst I, Sipchem, and Co-Chair, Leaders of Tomorrow Sub-Council, GPCA Youth Council
It is no wonder that every petrochemical company around the globe is rapidly moving toward digital transformation with clear goals and well-defined vision, especially after the great COVID-19 pandemic. With such sudden transformative changes, the importance of leveraging digital literacy within the petrochemical industry and shifting the paradigm from a manufacturing-oriented industry to a customer-centric one became even more pronounced.
#4 GCC’s strategic expansion and investment in nitrogen production
By Noora Mukhtar, Research Specialist, GPCA
As the global population is projected to reach 9.7 billion by 2050, the demand for food and agricultural products is intensifying, necessitating efficient and environmentally conscious nitrogen production. Additionally, the nitrogen industry is being influenced by broader global sustainability goals, including the push for alternative fuels (such as ammonia) by the International Maritime Organization (IMO) targets for reducing greenhouse gas (GHG) emissions from shipping.
#5 Global fertilizer demand begins its recovery after a rocky two years
By Laura Cross, Director, Market Intelligence, International Fertilizer Association (IFA)
The fertilizer markets stabilized in 2023 and H1 2024, despite continued global disruption across commodity markets. Fertilizers remain exposed to global risks spanning geopolitics, conflict, economics and climate. Macroeconomic drivers remain highly influential as inflation and high interest rates have reduced borrowing power for producers and consumers alike.
#6 Horizon scanning: What are the top trends and developments that will shape the industry in 2024?
By John Richardson, Senior Consultant, Asia, ICIS
Now that the New Year is in full swing, it is essential that we get to grips with the reality that this is not just a very extended petrochemicals destocking cycle. This makes chances of a recovery in 2024 minimal.
During the European Petrochemical Association (EPCA) annual meeting in Vienna last October, the phrase “extended destocking cycle” kept being mentioned. Participants asked if ICIS had seen any signs of destocking bottoming out, which would have been a sign that the end of the downcycle was not too far away.
#7 Understanding the Carbon Border Adjustment Mechanism (CBAM): Implications for the petrochemical industry
By Bureau Veritas Middle East
The European Green Deal sets a Union-wide target for climate neutrality by 2050, with a 2030 goal of reducing net greenhouse gas (GHG) emissions by at least 55%. New proposed targets aim for a 90% reduction by 2040, emphasizing a transition that is socially fair, competitive, and green.
#8 Red Sea crisis causes logistic snarls impacting plastics business
By Kaushik Mitra, Executive Director, EMEA, Polyolefins; Fabrizio Galie, Associate Director, EMEA Polypropylene; and Utpal Sheth, Executive Director, Asia Plastics and Polymers, Chemical Market Analytics by OPIS
Recent attacks on ships going through the Red Sea is causing concern about movement of shipping traffic via the key Suez Canal, through which close to a 10%-12% of global container traffic moves. The attack caused alarm in the shipping industry sending freight and insurance rates soaring.
#9 Chemical recycling: Progress, drivers and the potential future for Middle East participants
By Will Collins, Global Editor, Recycled Polymers, Argus
Chemical recycling is in vogue, with strong demand from the packaging industry for like-virgin recycled plastics and considerable investment towards rolling out technologies to commercial scale, what steps can Middle East market participants take to advance in the space?
A lot of work continues to go in on a global basis, to scale chemical recycling as a compliment to mechanical recycling and drive towards circularity in the plastic industry. The aim to direct plastic waste away from landfill aligns with the targets set out in Middle Eastern countries’ plans, and development is being supported by polymer producers’ need to offer products compatible with the voluntary targets and impending legislative requirements of their customers.
#10 Unlocking transformation: GCC’s journey to supply chain digitalization
By J Sivan, Senior Consultant, Supply Chain & Logistics Practice, Frost & Sullivan
The traditional approach of focusing solely on lean operations has left many global organizations vulnerable to large-scale disruptions. The pandemic-induced supply shock in the GCC region highlighted the vulnerabilities of traditional supply chain processes. While lean operations are efficient in stable conditions, they often lack the flexibility and resilience needed to withstand major disruptions.