NEW DELHI: Asia’s naphtha refining profit margin started the week in losses amid poor demand from petrochemical units and bearish outlook from China, traders said.

The crack plunged to minus $52.38 a metric ton over Brent crude, compared with minus $49.47 on Friday.

There is a slowdown in demand and prices for chemical products are lower, Head of Thai conglomerate SCG said on Monday.

Therefore, 2023 revenue growth will be flat from last year, even with the increase in capacities from the Long Son Petrochemicals complex startup.

Long Son Petrochemicals, owned by SCG Chemicals, will start commercial production at its petrochemical complex in southern Vietnam in September.

SCG’s Roongrote Rangsiyopas said there is no recovery in sight in the second half of the year, as China consumption remains poor despite their reopening.

China is relentlessly adding new petrochemical capacity despite a global glut as the country’s refiners diversify from transport fuels, threatening to depress margins worldwide through 2024 as weak economic growth saps demand.