China turning stagnant, cautious of growth: Celanese chief

19 July 2013 18:12  [Source: ICIS news]

HOUSTON (ICIS)--China is turning stagnant, with chemical producers there more focused on short-term trading, Celanese’s top executive said on Friday.

“So much of the industrial chemical market there is in turmoil because demand has just not grown,” Celanese CEO Mark Rohr said in a Q2 earnings conference call.

US-based Celanese reported a 40% drop in Q2 earnings on Thursday, citing lower income from its acetyls segment because of weaker economies in Asia and Europe.

A Celanese executive said earlier this year that Asia and Europe account for roughly 75% of Celanese’s revenues, with Asia producing almost half of that percentage.

Rohr said the economic slide in China stems from a shift in focus on short-term results and not long-term.

“Nobody’s building any inventory,” Rohr said. “There’s an element of caution that has been put in place there that’s causing everyone to move slowly.”

By: Lane Kelley
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