APIC ’25: S Korea petrochemical output, exports to decline in 2025

BANGKOK (ICIS)– South Korea’s petrochemical production is projected to decline by 1.4% in 2025, with export volumes expected to contract by 4.2%, while domestic demand is forecast to increase by 2.3%.

• Industry to remain export-driven
• Domestic consumption to reverse 6.6% contraction in 2024
• Economic recovery likely limited

“The operating rate is expected to decline slightly due to continued oversupply and the rapid pace of production expansion from China,” the Korea Petrochemical Industry Association (KPIA) said in a report prepared for the Asia Petrochemical Industry Conference (APIC) 2025.

The conference is being held in Bangkok, Thailand on 15-16 May.

“[With] trade protectionism spreading worldwide, it is expected that operating rates will be further adjusted due to a decline in [exports],” KPIA said.

Full-year petrochemical production for 2025 is expected to shrink to 20.7 million tons, as economic recovery is expected to be limited, amid an oversupply in China.

However, purchases are expected to gradually pick up, especially in major demand centers.

South Korea’s petrochemical production in 2024 declined by 1.4% to 21.1 million tons.

Its petrochemical export volumes in 2025 are projected to decline further to 12.3m tons, after shrinking by 3.1% in 2024.

South Korea is a major exporter of synthetic resins, synthetic fiber and synthetic rubber, with overseas sales accounting for a substantial portion of total production of these products.

S Korea 2025 Petrochemical Industry Forecasts (in ‘000 tons)

Products	Production	Exports	Exports share to total output (%)	2024 actual export growth (%)	2025 projected export growth (%)
Synthetic resins	14,946	9,533	63.8	-1.1	0.3
Synthetic fibre raw materials	5,193	2,401	46.2	-2.6	-6.1
Synthetic rubber	614	387	63.0	0.6	-2.9

Source: KPIA

“In 2025, the petrochemical industry is expected to face even more difficult times ahead … Overall, the export-driven growth trend is expected to continue,” the KPIA said.

Domestic petrochemical consumption this year is projected to grow by 2.3% to 9.5m tons, reversing a 6.6% contraction in 2024.

Due to intensifying competition with low-priced Chinese products, however, the pace of domestic demand recovery is expected to be limited, according to KPIA.

Focus article by Jonathan Yee