KUALA LUMPUR (Dec 23): Hong Leong Investment Bank (HLIB) Research expects a down-cycle for the petrochemical sector over the next few years, beginning in 2022. The research firm said it gathered that the petrochemical super-cycle had somewhat peaked based on its recent analysis of Petronas Chemicals Group Bhd (PetChem) and Lotte Chemical Titan Holding Bhd. “We think that indicated capex levels should still be sufficient to help the sector recover in 2022, albeit still lower than its pre-pandemic 2018-2019 levels,” he said. “In 2022, non-OPEC supply is projected to see robust growth of three million bpd. “Investment in the non-OPEC upstream sector in 2022 is estimated at around US$350 bilion (about RM1.47 trillion), showing a 50% drop compared to the 2014 level,” said Yap.

Source: The Edge Markets December 23, 2021 16:11 UTC