A steep drop in demand for petrochemicals in the international market especially in China, has created difficult times for manufacturing firms in Korea since July.
To cope with the contracting demand, petrochemical makers like LG Chem Ltd and S K Chemicals Co in South Korea are forced to downscale their production.
Mr Kim Jong-sung (Manager) Korea Petrochemical Industry Association, while speaking regarding low demand of petrochemicals in China and its adverse effects on South Korean petrochemical industries, told to Fibre2fashion.com, вЂњI think main reasons for low demand of petrochemicals in China are the effects of global financial turmoil and the disappearance of special demand related Beijing Olympic.
вЂњKorean petrochemical industry always depended on the exports and about 50 percent of production is being exported to China. Observing the recent low demand of petrochemicals in China, Korean companies are reducing operational rate.вЂќ
Discussing about the future of petrochemical industries in South Korea, Mr Kim Jong-sung stated, вЂњI think not only in Korea, global petrochemical industry is suffering downturn due to recent economic crisis. This is going to damage the new chemical capacities over the next few years. So Korean petrochemical companies should now focus on restructuring their businesses for the time being.вЂќ