Thailand’s second-largest listed petrochemical company Indorama Ventures said a
multi-year supply glut that depressed industry profits is beginning to ease
after Middle East supply disruptions and plant shutdowns tightened markets and
lifted margins. The company expects strong momentum through the rest of the
year. CEO Aloke Lohia said geopolitical tensions have disrupted some Middle East
production and trade flows and that shutdowns and consolidation should help
absorb excess capacity; Indorama is considering first-time production in the
Middle East to seize opportunities from reduced competition. Continued cost cuts
and a shift to gas-based feedstock should support the company’s competitiveness
and earnings.
