Petrochemicals trade could see a 15% drop due to U.S. tariffs, TTE executive says - report

[Molecular sieve dehydration system : Oil and gas Refinery]
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U.S. tariffs are intensifying pressure on the global petrochemicals sector, which could lead to a further 15% drop in worldwide petrochemical trade, according to a TotalEnergies (NYSE:TTE [https://seekingalpha.com/symbol/TTE]) executive.

"If tariffs remain in place, petrochemicals trading will see another 15% drop on top of the 34% drop it has seen in the last five years," TotalEnergies' head of petrochemical trading, Ganesh Gopalakrishnan, told _Reuters _on the sidelines of the APPEC conference in Singapore.

The global petrochemical trade has already shrunk 34% over the last five years, and the tariffs are expected to deepen these declines with China shifting its exports to Asia. The tariffs have adversely impacted supply chains, raised costs, and forced major recalibrations for producers relying on integrated global trade routes.

These tariffs are prompting supply route diversification and competitive rebalancing within Asia and other exporting regions.

Sanjiv Vasudeva, executive vice president and chief market officer of Haldia Petrochemicals, said at the conference that tariffs are also making nations more protectionist. He added that overcapacity and instability have made short-term investment planning more challenging.

"Our main market is South Asia, Thailand, Indonesia, Malaysia, Vietnam," said [https://www.reuters.com/business/energy/us-tariffs-worsen-petrochemical-sector-challenges-executives-warn-2025-09-09/] Bahrin Asmawi, chief commercial officer of Malaysia's Petronas Chemicals Group. "And all these are being supplied, being attacked by China because they cannot supply into the U.S.", he added.

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