LyondellBasell said it was seeing a better market in North America for its chemicals this year due to low ethane feedstock costs and better petroleum spreads, while the markets in Europe and China continue to be weaker.
With petroleum refining margins improving from the last quarter of 2023, the oxyfuels and refining segment was seeing an uptick, CEO Peter Vanacker said at the JP Morgan Industrials Conference.
Oxyfuels are a key component of clean-burning, high-octane gasoline, which improves fuel efficiency, engine performance and air quality, Reuters reported.
US vehicle miles rising to pre-pandemic levels was also boosting the segment, Vanacker said.
LyondellBasell also expects the bipartisan infrastructure law to support its building and construction segment during the second half of 2024.
Chemical companies experienced a lacklustre 2023 as they struggled to offload inventory amid a slowdown in demand in major markets such as Europe and China, where recovery from the COVID-19 pandemic has been weaker than expected.
Vanacker added that while disruptions in the Red Sea reduced the availability of imports, volumes were improving in Europe as customers were turning to local supply, with lower natural gas prices also reducing cost pressures.
In China, the targeted stimulus efforts haven't yet resulted in an improvement in demand even after the Lunar New Year, he said.
LyondellBasell predicts growth in the US chemicals market
