SABIC warns on demand


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’.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. Paul is also an invited member of the World Economic Forum’s Global Agenda Council. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such as oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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