European commodities broker Marex to expand petrochemical trade team

Marex

04/09/2025 08:49

By Mohi Narayan

NEW DELHI, Sept 4 (Reuters) - European commodities broker and financial group Marex 8UU.F is expanding its global petrochemical trading team, betting on a recovery in an industry hit by lower margins, its new petrochemical trading head said on Thursday.

The company aims to grow its petrochemical trading portfolio to up to 3 million metric tons within a year, said Vasudev Pottathil Balagopal, who joined Marex in August.

Balagopal previously headed the aromatics trading division at Japan's Mitsubishi Corp 8058.T.

     One trader will join Marex's petrochemical trade team in Tokyo this month, he said, adding the company will add more staff in Dubai, Japan and Singapore by the end of December.

Marex also has operations in New York and Rotterdam.

The company is widening its petrochemicals trading portfolio to include products such as aromatics, polyvinyl chloride, chlor-alkali and shipping liquids like methanol.

The global petrochemical industry is facing a longer-than-expected downcycle due to overcapacity in China and the Middle East. Tariffs and trade protectionism have further exacerbated the industry's woes.

"I am expecting turbulence in trade from tariffs to ease slightly maybe in a year and also European demand needs to revive for the industry to see a recovery," Balagopal said.

Europe's petrochemical industry is unravelling under a wave of plant closures after years of losses.

 (Reporting by Mohi Narayan; Editing by Nidhi Verma and Sonia Cheema)

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