01 February 2012 18:52 [Source: ICIS news]
HOUSTON (ICIS)--Rising demand from emerging markets, as well as lower feedstock costs, should help North American and European chemical producers achieve a “reasonably good” 2012, credit ratings agency Moody’s said on Wednesday.
"Emerging markets will offset the chemical sector's weakness in industrialised nations,” John Rogers, senior vice president at Moody’s, said in a report.
Chemical companies in North America would benefit from low energy and feedstock costs, and from growing demand in emerging markets, ?xml:namespace>
However, while European producers will also benefit from growing emerging markets, they will be hurt by the looming threat of a recession and weaker demand in
In his report,
Meanwhile, North American producers of ammonia, methanol and ethylene should benefit from advantageous feedstock prices.
Nevertheless, commodity chemicals producers with significant exposure to Europe such as Kerling or Styrolution would be hit by lower prices and weaker margins, as well as declining demand in
Also, should the outlook in North America worsen or Europe go into a severe recession, then even producers such as Celanese or Cabot could see the benefits they have from their exposure to emerging-market growth erased, it said.
Moody’s report also said that large pension burdens could pressure firms such as US-based fibre producer Invista or Germany’s specialty chemicals major Evonik this year.
Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog
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