High oil prices and lockdowns place double shackles on China’s petrochemical industry

The Russia-Ukraine war pushed oil prices to a record high in March and feedstock prices have increased accordingly, leading to squeezed margins for petrochemical products. The biggest wave of the pandemic hit Shanghai, China from March to May. Strict lockdowns put severe pressure on the packaging, electric & electronic and automobile sectors, among others. How high oil prices and lockdowns impact China's petrochemical industry? In this insight, we will analyse the impact of the high oil price and lockdowns on the key commodities and discuss the post-lockdown outlook.