05 January 2012 21:52 [Source: ICIS news]
NEW YORK (ICIS)--Profitability in the global petrochemical and polymers sectors is expected to reach a new cycle peak in 2015, a consultant said on Thursday.
“A new peak in profitability is forecast for 2015, as improvements in the global economy bolster demand,” said James Virosco, principal at US-based consultancy Nexant, at a meeting of the Chemical Marketing and Economics Group in ?xml:namespace>
“On the supply side, we have good visibility through 2015 and it appears capacity additions will be lower than demand growth,” he added.
While margins have been “softening” for the petrochemicals and polymers sectors recently, Virosco does not view this as the beginning of a major downturn.
The weaker current market conditions follow “a bit of a peak in terms of profitability in late 2010 and early-to-mid 2011,” noted the consultant.
This was the result of vast improvement in underlying economic activity, he added.
Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
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