Bangkok: PRISM, a PTT Group initiative, has highlighted a strategic blueprint to safeguard Thailand's petrochemical industry from mounting pressures due to the influx of Chinese goods and excessive global production capacity. According to Thai News Agency, PRISM experts, during the 17th PTT Group Petrochemical Outlook Forum, unveiled the "four-piece chessboard" strategy as a lifeline for the industry.

Ms. Pimkamol Julchawon, an analyst at PTT Global Chemical Public Company Limited, presented alarming figures indicating that while certain sectors like plastics for drinking water and electronic components have experienced growth, others critical to transportation, such as plastic film and pallet wrap, are expected to contract significantly by 2026. This is largely attributed to the surge of "Made in China" products in Thailand, particularly shopping bags and plastic cardboard boxes, which have seen substantial increases since 2024.

To counteract these challenges, PRISM proposes a strategic "Four-Piece Chess" model. The strategy's "King" focuses on expanding the market for PE and PP in South Asia, Southeast Asia, and Africa. The "Rook" addresses the challenge of excess capacity by coping with increased production from China and the Middle East. The "Bishop" emphasizes cost advantages by shifting feedstock towards less expensive ethane, while the "Knight" suggests long-term portfolio adjustments by focusing on high-value products.

Ms. Thananya Songchu, an analyst at Thai Oil Public Company Limited, added that the contraction in the aromatics market over the past five years necessitates strategic adaptation. With the Chinese supply of paraxylene set to increase, Thailand's downstream polyester industry is transforming from an importer to an exporter of PX.

The challenges are further compounded by overcapacity in the gasoline market and external factors such as the rise of electric vehicles and sustainability regulations. In response, the petrochemical sector is urged to focus on two key directions: targeting new markets in Africa and India, and upgrading applications to high-value industries like semiconductors and AI, where growth is expected to be significant.

These strategic recommendations aim to navigate the Thai petrochemical industry through the current crises and position it for future growth and stability.