The petrochemical markets in Asia are being hit as the buying sentiment takes a downturn from the effects of the Delta variant of the coronavirus across the region. Supply chains are also getting affected due to logistical constraints arising out of curbs and port restrictions amid the rising number of COVID cases.

The new variant comes as major blow to all the hopes of an improvement post vaccination drives as the cases surge in many countries in the Asia-Pacific region. Among the most affected countries are Thailand, Malaysia, and Indonesia with more than 20,000 case being reported for Indonesia and Thailand and 17,000 for Malaysia.

Spike in infection cases has adversely impacted the market dynamics in the region. In China, the Ethylene shipments planned to be delivered in September were hampered by restrictions on foreign vessels at some ports in Jiangsu. For several days in the last week, vessels faced restrictions at Yizheng which is a major port for Ethylene imports.

The prospects of supply chain disruptions have affected several petrochemicals. Acetic Acid export discussions weakened in China as traders are waiting for new protocols. Polypropylene futures in China also weakened due to weaker demand in Asia amid the fears of the Delta variant.

As per ChemAnalyst, “market participants are keeping a keen eye on the market although speculations have been made that the supply chains might get further hampered if the resurgence of coronavirus in Asia doesn’t settle soon. Short term outlook for petrochemical market appears to be dull in Asia-Pacific region as demand has already deteriorated for major petrochemicals and supply bottlenecks have made their presence felt.”