As the blog noted earlier this month, everyone looks to the majors for guidance during difficult times. It therefore welcomes today's comments from SABICs CEO, Mohamed Al-Mady, when announcing their Q3 results. SABIC are probably the strongest petchem producer in the world, with experienced management and access to advantaged cost feedstocks.
Al-Mady confirmed that SABIC has completed the financing of its new projects. But he then added that " the expected global recession may lead to a decline in demand for products in most of the international markets". This is clearly a carefully worded comment, which anticipates an actual decline in demand, and not just a decline in growth rates. Al-Mady's downbeat view seems similar to the blog's, which yesterday published its own 2009 Outlook, 'Budgeting for survival'.