1、Aphinya KhanunthongAphinya.K+662 296 2000 ext.10262THAILAND INDUSTRY OUTLOOK 2021-23PLASTICSJanuary 20211Krungsri ResearchOverviewPlastics are produced from hydrocarbons,most commonly from chemicals originating from crude oil distillation or natural gas separation processes.These initial processes y

2、ield products that are then separated into their component chemicals,including ethylene,propylene,styrene,phenol and acrylonitrile,which comprise the major inputs in the production of a range of plastic resins.There are different types of plastic resins,distinguished by properties such as ductility

3、and heat-tolerance.And depending on demand from downstream industries,these resins may be molded and shaped into finished goods for use in a large range of applications(Figure 1 and Box 1).Recently,there has been growing interest to manufacture plastics from renewable resources,including from polyla

4、ctic acid(PLA)derived from corn,sugarcane or cassava.While plastics produced from PLA are biodegradable,it is possible to use them in many applications that are identical to those of traditional oil-based plastics.In 2019,the plastics industry accounted for 6.1%of Thai GDP,playing an important role

5、in linking between the petrochemicals sector which supplies upstream inputs,with end-user industries(especially packaging,construction,auto assembly,electronics and electrical appliances,and medical equipment),and for which the plastics industry provides finished and semi-finished products.Following

6、 depressed conditions in 2020,domestic sales and export volume of plastic products are projected to rise by an average of 2.0-3.0%per year over 2021-2023.This will be helped by the anticipated recovery in the Thai and global economies,especially downstream industries,including packaging,electrical a