Moody’s sees negative outlook for Asian petchems

Its not just the World Bank that is concerned about the outlook for East Asia. Today, Moody’s (the ratings agency) says it has a negative outlook for the petrochemical sector over the next 12-18 months. It concludes:

• “In response to weakening global demand, Asia Pacific’s petrochemical companies are rapidly shedding inventory and delaying their procurement of feedstock, which has amplified the sector’s current down-cycle.
• “The negative outlook in the Asia-Pacific petrochemical sector reflects petrochemical manufacturers’ deteriorating margins, which in turn result from weak demand, a slowing economic environment, and new capacity coming online in the Middle East and China in 2009 and beyond.”

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. 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 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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