BASF opened its first China plant 20 years ago. Its Asian strategy focuses on China, Japan, S Korea and India. Thus yesterday’s comments by vice chairman Martin Brudermüller deserve careful study by any company or investor who is interested in the outlook for the region. The background was an unexpected 5% fall in BASF’s regional […]
Tag Archives | BASF
Last month, the blog suggested that CEOs might want to warn investors of the threat to earnings from high oil prices, unemployment and economic fragility. BASF, the world’s largest chemical company, have done exactly this today. New Chairman, Dr Kurt Bock warned: “The economic risks remain: We continue to be concerned about the development of […]
Its now a year since the blog first highlighted the worrying rise in force majeures (FMs) since the Great Recession began. Most disappointingly, continuing strong profitability has not led to any improvement. In fact, as the chart shows, the position has worsened over the past 6 months. It is based on the number of FM […]
The blog was very interested to see a recent ICIS interview with Torsten Penkuhn, BASF’s petchem head in Asia, by Will Beacham. Penkuhn noted: “We are more and more concerned at BASF about an increasing risk of overbuilding once again. We currently see a risk that people are becoming too ambitious, enthusiastic and optimistic. And […]
The styrene business has been increasingly difficult in recent years: • CD and video sales went online, removing the need for polystyrene (PS) packaging • Prices for the main feedstock, benzene, leapt in the mid-2000′s, due to US gasoline market changes, forcing convertors to look at alternatives such as polypropylene • Recycling became an essential […]
The blog has come across a useful new tool for global brainstorming, run out of San Francisco by DiscoveryCast. They have recently organised a major event with Paris-based SpecialChem to review the current state of play in bio-based initiatives. This involved a group of 550 experts from 400 companies (including 3M, Dow, Michelin, DuPont, Arkema, […]
The business climate for Western firms in China is getting worse. 2 weeks ago, the CEO of General Electric, Jeffrey Immelt, caused a stir when he told a private dinner that “I really worry about China. I am not sure that in the end they want any of us to win, or any of us […]
Coal was the original source of most chemicals. It was then replaced in the 1960′s by oil-based feedstocks. Their lower cost of manufacturing led to the boom in applications and volumes seen over the past 50 years. More recently, biomass’ potential is now being explored. At the same time, major companies such as BASF, Dow, […]
The blog is a great believer in the retail sector’s ability to help us forecast chemical industry trends. McBride is Europe’s leading ‘own brand’ in the household and personal sector. Its profit warning on Thursday of “weak retail sales across Europe“, therefore rings alarm bells. The sector is a large outlet for chemicals, and has […]
LyondellBasell (LBI) is to exit from Chapter 11 bankruptcy on 30 April, 15 months after entering it in January 2009. The past 15 months have been an expensive lesson for those debt-holders who financed Basell’s purchase of Lyondell in July 2007, at the peak of the market. LBI entered Chapter 11 with $24bn of debt. […]
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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.