Economic uncertainty and weak starts are expected to limit the outlook for a global petrochemical recovery in 2024. While demand is showing signs of stabilisation, an oversupply will continue to lower petrochemical production margins. Due to weak economic growth and excess supply, chemical manufacturers will again face market challenges in 2024. Robert Steele, senior director of global petrochemical product analysis at Standard & Poor's Global Commodity Insight, said the global ethylene market is a proxy for petrochemicals, indicating oversupply by 2026. Plastic demand was lower than expected due to inventory replenishment and weak demand for durable goods. Large-scale polymer destocking distorts the comparison of potential demand. Steele said the year-on-year growth in global demand for polyethylene and PVC will be close to zero in 2023, with global polypropylene demand expected to rebound by 3% to 4%.