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. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. 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.

, , ,

Leave a Reply