Pedro Fretas, Chief Financial Officer of Brazilian chemical giant Brasco, recently stated that the new cycle of global petrochemical products and polymers will be postponed until 2025.

Fretas stated that although China's service industry is experiencing a strong recovery, the expected industrial recovery in the global petrochemical industry has not occurred. The Chinese government has started implementing stimulus policies, which may have a positive impact on the global petrochemical industry starting from the fourth quarter of this year. In the past two years, global polymer production capacity has increased by approximately 7 million tons per year, which means supply has increased by 6% to 7%. Starting from the second half of 2024, the market may begin to recover as there is no new production capacity to increase and demand returns to an average annual growth rate of 3.5%. A new upward cycle in the global petrochemical products and polymer market should occur from 2025 to 2027, with a strong recovery.