AFPM '14: US chems face 'catastrophe', says consultant - video
30 March 2014 23:10 [Source: ICIS news]
LONDON (ICIS)--US chemical producers need to urgently review the scale of planned ethylene
expansions or face “catastrophic” consequences, a leading consultant said in a video published by ICIS on Sunday.
If the majority of planned expansions go ahead, both US and global ethylene markets face huge oversupply later in the decade as market growth continues to be tepid in developed countries while Asia becomes more self-sufficient, according to Paul Hodges, chairman of UK-headquartered International eChem
and regular ICIS blogger
Hodges believes that the aging population in both mature and emerging markets will contribute to persistently tepid demand growth.
He said: “This is the future of the American and European petrochemical industries. If we make a wrong decision on this scale now, the consequences could be catastrophic. If I had one wish it is that boards would take a good look at the demographics with an open mind and come to a conclusion before they make a final decision. I think they would be very surprised by what they find.”
Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC
continues through Tuesday.Read Paul’s article “US boom is a dangerous game” in the 24 March edition of ICIS Chemical Business. Copies are available in the AFPM ICIS suite.
Paul's Chemicals and the Economy blog is available here.
By: Will Beacham+44 20 8652 3214
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