APIC ’09: Thai Petchem Group Sees Economic Recovery in H2
SEOUL (ICIS news)--Thailand’s petrochemical association is hopeful of an economic recovery in the second half of the year when the government’s massive fiscal stimulus will have taken root, boosting consumer and business confidence.
In a report presented to the 9th Asia Petrochemical Industry Conference (APIC ‘09) on Thursday, the Petrochemical Industry Club (PIC) said the government’s Baht (Bt)1,517bn ($44bn) investment in infrastructure projects over the next three years would be a major boost to the domestic economy.
Prime Minister Abhisit Vejjajiva had announced a Bt117bn stimulus package in January, followed by another Bt1,400bn as the global economic crisis proved to be much harder to contain.
But the export-oriented Thai economy would still shrink this year by about 1% this year after having been badly hit in the first half, according to data from the National Economic and Social Development Board (NESDB). The economy reeled as demand from major western markets collapsed.
In 2008, the financial and economic turbulence of the last four months of year led to a 4% fall in consumption of major polymers and a 3% decline in production volumes, the PIC report said.
Ethylene consumption had been stable for the whole of last year due to the 20,000 tonne/year expansion of Thai Plastic Chemical’s vinyl chloride monomer (VCM) unit, the report added.
Production volumes of the chemical in the country, however, dipped 6% as cracker operators slashed utilisation rates in response to poor demand.
Propylene output also showed an 8% decline while consumption slipped 5% in 2008.
APIC is an annual gathering of petrochemical industry players. The 2009 conference in Seoul, South Korea will run from 14-15 May.
At the start of the summit on Thursday, the conference hall that can accommodate about 1,000 people was half empty when the first few presentations were made.
Concerns about the global outbreak of H1N1 flu had prompted some petrochemical companies to forego attendance to one of the largest industry gatherings in Asia. The host country South Korea has some confirmed cases of H1N1 flu infection.
In a report presented to the 9th Asia Petrochemical Industry Conference (APIC ‘09) on Thursday, the Petrochemical Industry Club (PIC) said the government’s Baht (Bt)1,517bn ($44bn) investment in infrastructure projects over the next three years would be a major boost to the domestic economy.
Prime Minister Abhisit Vejjajiva had announced a Bt117bn stimulus package in January, followed by another Bt1,400bn as the global economic crisis proved to be much harder to contain.
But the export-oriented Thai economy would still shrink this year by about 1% this year after having been badly hit in the first half, according to data from the National Economic and Social Development Board (NESDB). The economy reeled as demand from major western markets collapsed.
In 2008, the financial and economic turbulence of the last four months of year led to a 4% fall in consumption of major polymers and a 3% decline in production volumes, the PIC report said.
Ethylene consumption had been stable for the whole of last year due to the 20,000 tonne/year expansion of Thai Plastic Chemical’s vinyl chloride monomer (VCM) unit, the report added.
Production volumes of the chemical in the country, however, dipped 6% as cracker operators slashed utilisation rates in response to poor demand.
Propylene output also showed an 8% decline while consumption slipped 5% in 2008.
APIC is an annual gathering of petrochemical industry players. The 2009 conference in Seoul, South Korea will run from 14-15 May.
At the start of the summit on Thursday, the conference hall that can accommodate about 1,000 people was half empty when the first few presentations were made.
Concerns about the global outbreak of H1N1 flu had prompted some petrochemical companies to forego attendance to one of the largest industry gatherings in Asia. The host country South Korea has some confirmed cases of H1N1 flu infection.
quoted from: www.ICIS.com
