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FT

No conspiracy on raw materials pricing – the business model has changed

The Financial Times kindly prints my letter this morning on pricing policies for polyethylene. Sir, Conspiracy theories are always good fun, and Robert Bateman’s views on the polyethylene market are no exception (Letters, December 29). But there is a much more prosaic explanation for the pricing structures he describes. The key issue is that until […]

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Industry needs new strategy to spread benefits of globalisation

The Brexit vote, and Donald Trump’s election, confirm that we are in a New Normal world.  In the interview below with Will Beacham, Deputy editor of ICIS Chemical Business, I highlight some ideas about how industry needs to adapt. BARCELONA (ICIS)–The global chemical sector needs to stimulate demand for innovative products and services in mature […]

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Chemical company results highlight growing weakness down the value chains

Looking down the table below of chemical company’s reports, its hard to be very optimistic about the outlook. The first half of the year disappointed, as I noted in August.  Then Q3 saw major volatility as the hedge funds and high frequency traders played their games in the oil market – prices weakened as demand […]

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World Aromatics Conference focuses on key industry challenges

The 15th World Aromatics & Derivatives Conference take place in Vienna in 2 weeks’ time on 22 – 23 November. Co-organised as always with ICIS, we will benefit from the insight of key executives from the global industry including: THE OUTLOOK FOR AROMATICS Shell’s Commercial Manager, Europe, on feedstock and product availability China’s CICCC on what […]

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Global demand slowdown hits chemical industry results

Its not been a great 6 months for the global chemical industry, and my usual quarterly survey of company results confirms the disappointment. The first half of the year is typically the strongest, for seasonal reasons, as companies come back to work after the Christmas holiday and prepare for the peak car-buying and construction periods […]

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Force majeures at all-time highs even before downturn begins

There is no such thing as an accident.  The chemical industry, like others, has known this for over 30 years, since the adoption of Quality Management techniques.  Yet it seems that over the past 18 months either this important fact has been forgotten or, more likely, I fear, has simply been ignored. The evidence for […]

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ACS webinar on Brexit and the challenges of over-supply

Chemistry and the Economy: 2016 Mid-year review The UK’s decision to leave the European Union (Brexit) is causing major upheaval in financial markets as investors rush to supposedly “safe havens”. This is highlighting the underlying slowdown in demand growth caused by globally ageing populations. What does this mean for the chemical and pharma industry? Can […]

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US polypropylene imports rise as China aims for self-sufficiency

Difficult times lie ahead for global polymer markets, as I note in a new analysis for ICIS Chemical Business. In the short-term it is clear that downstream users have, once again, been busy building stock in recent weeks as the oil price rose. But now, finance directors are getting calls from their bankers asking about […]

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ACC Surplus May16

Surplus chemical industry capacity reaches 26% as demand slows

Global demand is continuing to slow, yet chemical industry capacity is continuing to ramp up.  As a result, supply gluts are likely to appear in many key areas as we move into the second half of the year.  That is the key conclusion from the latest American Chemistry Council data for global chemical capacity and […]

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Chemical industry is the best indicator of EM outlook – and the outlook is not good

Policymakers would be better off following the fortunes of the chemical industry, if they wanted to forecast the global economy, as I describe in my latest post for the Financial Times, published on the BeyondBrics blog Capacity utilisation (CU%) in the chemical industry has long been the best leading indicator for the global economy. The […]

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