Chemical production growth goes negative

Prod dec08.jpg

The chart, taken from the weekly ACC report, shows just how badly chemical production has been hit in recent months:

N America. This region has been worst affected, with volumes down 12% in November versus 2007.
W Europe/CEE. Both regions were down 3% in October versus 2007
Asia/Latin America. These regions are just positive, with 1% growth.
Middle East. This region remains strong, with 14% growth, as new production based on advantaged feedstock comes online.

Overall, world growth is now a negative 1.9%, confirming that we are in a global recession. And core sectors for chemical demand such as housing and autos are still in decline. The blog therefore fears that the news on production will get worse, probably a lot worse, before it gets better.

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.


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