Collaboration with: Sinopec Economics & Development Research Institute and the Gulf Petrochemicals & Chemicals Association (GPCA)
The dramatic slowdown of global economic activity due to the coronavirus pandemic has caused significant disruptions to the global petrochemical industry. The lockdown restrictions and containing measures are reshaping the demand for petrochemicals. Structural change of global crude supply and new capacity in the pipeline is changing the competitiveness of petrochemical producers. On top of demand- and supply-side uncertainties, global petrochemical supply chains face increasing pressure from trade disputes, rising protectionism and disruptions in global logistics. How will these factors affect the short- and medium-term outlook of the petrochemical industry? What are the best strategies to cope with the current market turbulence and mitigate future risks?
China and Saudi Arabia have emerged as key chemical production hubs with complementary advantages. Mutual partnerships between China and Saudi Arabia could help both countries to rebuild the chemical supply chain resilience, maintaining economic growth and creating job opportunities. Based on the lessons learnt from ongoing joint projects and understanding of global market change, we will try to identify the most promising cooperation areas and frameworks, and discuss the ways to facilitate this process. What can the industry participants from each country gain from joint initiatives? Which national, bilateral and multilateral policy frameworks can facilitate this process? How would an amplified cooperation contribute to the strategic national goals such as Vision 2030 and the Belt and Road Initiative?