COMPANIES involved in chemicals are starting 2022 on a strong note as demand from end-use industries pick up with the reopening of economies.
Transparency Market Research in a mid-January report, estimates that the Malaysian chemical and petrochemical market will expand at a compound annual growth rate of 4.2% for the 2021 to 2025 period.
“Chemicals are used across various sectors from pharmaceuticals, automotive, packaging to agriculture. A pick-up indicates that economies are rebounding from the Covid-19 led downturn," says a dealer.
Additionally, companies in the sector are also expected to get an uplift from higher product prices following the Russian-Ukraine conflict, although prices are expected to stabilise over a period of time. Russia is a major exporter of chemicals such as potash, ammonia, urea and other soil nutrients and the conflict has disrupted shipments of those key inputs around the world.
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