Source of picture: http://whyfiles.org/ By John Richardson MY colleague Nigel Davis has written an excellent Insight article which highlights how some chemicals companies are seeking to respond to changing patterns. As we have discussed before, Bayer Material Science is adapting its portfolio of products in response to the megatrends – demographics, energy conservation, […]
Asian Chemical Connections
Dictating Chemicals Demand
By John Richardson SOME commodity chemicals companies still assume that, if they build new supply, demand will always eventually catch up with supply. The risks of not building new capacities, at times of easy financing and feedstock availability, are also viewed as too great. These include deteriorating economies of scale and loss of […]
A Dramatic Difference In Mood
By John Richardson THE big difference in the mood at the ground level of certain parts of the petrochemicals industry compared with that of company board members and investors was thrown into further stark relief earlier this week. As we discussed on Tuesday, the big polyolefins sector of this industry continues to struggle in China. Growth […]
Edgy And Nervous CEOs In Deep Contemplation
Davos 2011 Source of picture: eacci.net By John Richardson THE edginess and nervousness of Asian polyolefin markets we talked about last week is likely to be part of the mindset of any chemicals company CEO right now. As my colleague Nigel Davis wrote about last week, the industry’s financial results for 2010 are […]
Bayer Material Science Outlines Global Strategy
Patrick Thomas Source of picture: Bayer Material Science By John Richardson SUCCESS in chemicals – whether you are into commodities or specialities – is largely about eking out maximum value from every single molecule in all the important markets. The almost obsessive focus on China and other emerging markets might give the impression that […]
Global Chems Outlook: Pockets Of Strength And Weakness
Spain saves the world economy Source of picture: www.fifa.com By John Richardson GLOBAL chemicals sentiment seems to be muddled and confused as the constant flood of positive and negative macro economic data. Take last week’s American Chemistry Council (ACC) weekly report, for example, which at that time gave a clear indication that […]
Chemicals Growth Story Gets More Complicated
A Velozzi plug-in hybrid Source of picture: www.zerauto.nl.blog By John Richardson Doom-mongers are claiming the end is nigh with the world heading for a double-dip recession. This is happening at the same as the optimists are talking of the world entering a new sunny upland of sustained exceptionally strong emerging-market growth, which will more-than […]
BMS Plans New Asia Polycarbonate
By John Richardson Bayer Material Science (BMS) has announced plans for a new polycarbonate ((PC) plant in Asia in another sign of confidence that the chemicals industry, despite major macro-economic threats, is continuing to benefit from the continent’s soaring growth. BMS will make a decision on whether to build a new polycarbonate plant either […]
Maybe it’s not as bleak as I’ve made out…
Consensus opinion tends to swing firmly in one direction and then the other. For example, in the good old days of 2007 you would have been pretty hard-pressed to find many in the chemicals industry who saw anything but a mildly cyclical downturn. But the widely-held view now – that we are facing five years […]