Thank goodness for Janet Yellen, and China’s provincial governments. That was clearly investors’ thoughts, when they bid up chemical company share prices during Q1. For as the chart above shows, there was nothing in the fundamentals of supply and demand to suggest economic recovery was finally underway. Instead, the latest American Chemistry Council data shows […]
Tag Archives | chemical demand
What happens to your business, or your investments, if demand fails to return to the supply-driven Comfortable Middle Scenario forecast by consensus thinking? This is the question raised in our new Study, Demand – the New Direction for Profit (jointly produced by International eChem and ICIS). We suggest that access to a low-cost position on […]
The chemical industry is the best leading indicator for the global economy. The slide in operating rates (OR%) around the world during the seasonally strong Q2 period. is a clear warning that global economic growth may be stalling. This should be a major wake-up call for anyone still hoping that growth may recover to the Boomer-led SuperCycle level. The latest update from […]
Operating rates (OR%) rose to 84% in the global chemical industry in April, according to data from the excellent American Chemistry Council (ACC) weekly report. As the chart shows: This was back at January’s rate, after 83.6% in February and 83.7% in March (orange line) But rates are still below the minimum 88% rates seen in the SuperCycle (red) And they […]
“Not with a bang but with a whimper”. The blog’s 6-monthly webinar for the American Chemical Society (ACS) takes place next Thursday, 5 June, at 14.00 Eastern Summer Time. And once again, the ACS has kindly arranged for blog readers to register for it free of charge. As feared in last December’s Year-end Review, the promised economic […]
The latest American Chemistry Council report on global production shows output was up 3% versus September 2012, and just 18% above average 2007 levels. There was a mixed picture in the main Regions: Asia-Pacific was strongest, up 5.9%, with Japan accelerating as the weak yen helped its exports The Middle East continued to slow, and was up […]
Global chemical operating rates have shown little improvement over the summer months. As the chart from the American Chemistry Council (ACC) shows: Rates in July were at 86.4%. compared to 87% in May This compares with the average of 91% between 1987 – 2012, and 86.7% in July 2012 Total production was up 2.8% versus 2012, […]
Capacity utilisation continues to be on a downward path, according to the latest data from the American Chemistry Council. As their chart above shows, there has been no improvement since the summer: • October should see peak rates, as companies catch up after the summer break and rush to complete orders before Christmas • Instead, […]
The latest weekly report from the American Chemistry Council (ACC) includes a worrying picture of falling operating rates around the world. As their chart above shows, these fell quite sharply in August by 0.4% to 84.8%. By comparison, rates in August 2011 were 87.7%. The ACC also note that the slowdown seems to be widespread: […]
The blog’s latest post for the Financial Times’ ‘FT Data blog’ has just been published. It highlights the ACC’s new Chemicals Activity Barometer. By guest contributor Paul Hodges I suggested in an earlier post that chemical prices were an excellent leading indicator for the health of the global economy. The data highlighted that firms were […]
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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 as 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.