Global chemical recovery starts to slow

ACC prod Jun10.pngAt the mid-year point, its interesting to look at the performance of the total chemical industry, including pharmaceuticals.

The chart, from the American Chemistry Council, shows global demand has now recovered to 2008 levels. Pharma is more recession-proof than other parts of the industry, as people still become ill and need treatment.

In terms of Regions, N America remains the weakest performer:

• N America was up 5% in May versus 2009, with the ACC noting that “activity in the US softened“. Weakness was centred on petchems, organic intermediates and polymers.
• W Europe was up 12%, and growth seems to be peaking.
• Asia was up 12%, with earlier sharp gains now slowing.
• Middle East was up 13%, maintaining its performance as new plants come online.
• CEE was up 20%, as it benefits from the W European recovery.
• Latin America was also up 14%, helped by demand from China.

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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