NPRA '08: US polymers in for a good 2008

31 March 2008 00:12  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The US polymers industry is in for a good 2008 despite fears that a looming recession will grind the economy to halt, a consultant said on Sunday.

US polymers will remain highly competitive in the export market, and US domestic consumption will also improve after June amid a recovery in the economy, said Nexant’s vice president for polymers Robert Bauman.

“I may well be the sole voice predicting a recovery, but I do see a pick-up in the second half,” Bauman said on the sidelines of the 33rd National Petrochemical & Refiners Association (NPRA) meeting.

Bauman said he doubted the US would slide into a recession during an election year, adding that a sluggish economy would not be in the interest of either party trying to take the White House in November.

The latest Bush-sponsored tax rebates approved by Congress could be the first of several measures used to help strengthen the economy, he said.

Bauman also believed the Federal Reserve could further cut interest rates if necessary.

The consultant predicted a drop in crude oil prices by the end of the year.

“I expect to see crude oil ending 2008 at $75-90/bbl,” Bauman said, noting that he believed crude oil was now trading with a 20% speculative premium.

Prompt NYMEX crude oil closed at $105.62/bbl on Friday.

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By: William Lemos
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