Singapore exports weighed down by persistent oil rout

Petrochemical exports plunged 31% in February.

The ugly effects of the oil price rout are beginning to leave an indelible mark in Singapore’s non-oil-domestic exports figures.

According to HSBC, the effects are particularly visible in the petrochemical sector, which posted a 30.9% year-on-year plunge in February. This is the largest fall since September 2009.

“This is indicative of the large correlation between petrochemical and oil prices. Moreover, marine and offshore engineering will also see weakness if the low price environment is sustained,” stated HSBC.

HSBC noted that in spite of seasonal distortions, the February NODX figure definitely points to weaknesses in export markets, which will likely put a ceiling on growth in 1H15.

“We see NODX growth returning to positive territory for the rest of 2015 due to the low base effect from last year, but overall momentum will remain soft until the second half of the year,” the report stated.