14 June 2012 23:08 [Source: ICIS news]
HOUSTON (ICIS)--The electronics market will likely continue to improve after the sector ended 2011 with relatively high inventory levels, an executive with Dow Chemical said on Thursday.
At first, it seemed that it would take most of 2012 to work the material out of the system, said Bill Weideman, chief financial officer for Dow Chemical. However, that process is taking place faster than he initially expected.
Weideman made his comments during the Deutsche Bank Global Industrials and Basic Materials Conference.
In particular, tablets and smart phones continue to be strong, with double-digit growth rates, he said. Dow makes products used to make those devices.
"Overall, we see the electronics market continuing to improve," he said. The second half of the year should be better than the first half.
For chemicals in general, destocking had started to occur in April because of the general weakening in the economy and because of falling hydrocarbon costs, Weideman said.
Once customers expect that the prices have bottomed out, they should resume buying, causing inventories to rise, he said. That process should speed up if there are any indications that prices were about to increase.
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