Others 23% Thailand 67% SEA 10% Source: Petrochemical Marketing Department, IRPC Public Company Limited Sales Volume 2023 Petrochemical Sales by Market Demand from downstream industries is set to gradually recover. Industries, such as food and beverage packaging, continue to benefit from the rebounding tourism sector. Electric appliances and electronics have shown signs of a cyclical upswing since late 2023. ASEAN export sector will grow in tandem with recovering global trade. Nevertheless, the petrochemical and plastic pellet industries will still have to deal with risks associated with massive production capacity slated to come online in China. This is expected to alter trade flow in ASEAN and other regions exporting to China. Producers in these regions will have to find additional markets. Moreover, economic uncertainty in China itself plagued by protracted real estate market crisis is a cause for concern. Chinese manufacturing and export sector is likely to be affected by US protectionist trade policy and measures. There are also raging geopolitical conflicts, particularly Russia-Ukraine war and Israel-Hamas war, that represent major risk factors that must be closely monitored. Volatility of energy and feedstock prices will intensify if these wars expand into wider conflicts. In addition, the industries must also make adjustments to get ready for trade restrictions linked to climate change. Many countries have been compelled to set targets for significant reduction of carbon dioxide and other greenhouse gas emissions applicable to the energy and other industrial sectors. The United States and European Union will begin to apply regulations to impose control on import of products with high carbon footprint, encompassing petrochemical and other products in the manufacturing supply chain. As a result, petrochemical producers are must revamp their operations accordingly. Petrochemical Business Distribution Channels In 2023, IRPC focused mainly on the domestic market, which accounted for 67 percent of total sales. Such sales volume was achieved through 16 authorized distributors under official distributor appointment agreements. These distributors are highly skilled, capable of providing customer services, including direct sale to a select group of reliable customers with high potential, purchase quantities and a good credit history. This enabled the company to respond more quickly to customer requirements. The remaining one-third of sales were for the export markets, with emphasis on Southeast Asia, or ASEAN, which registered a steady growth. In 2023, IRPC exported 10 percent of its total plastic pellet sales to this market. 82 Structure and Business Operations of IRPC IRPC Public Company Limited
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