Tag Archives | chemical demand

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Global chemical recovery starts to slow

At 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 […]

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CEOs remain cautious over 2010 Outlook

The blog’s quarterly survey of company Outlook statements shows CEOs remain very cautious. There has been a rebound after the destocking disaster of Q4 2008 – Q1 2009. But there seems little confidence that we will quickly return to the levels of demand and margin seen in the 2003-7 Boom period. China’s stimulus and loan […]

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Chemicals face a new reality

The blog believes that the landscape has changed during the current downturn. We came into it on the back of a major boom in consumption, supported by reckless lending and borrowing. This mind-set seems unlikely to return quickly. Instead, as the period of destocking/restocking comes to an end, we may face a “new reality”. This […]

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After destocking, chemical volumes still down 15-20%

The great wave of destocking is finally coming to an end. And it is clear that underlying global demand is well below previous “normal” levels. The evidence for this can be seen in the above chart, based on American Chemistry Council data, which shows global chemical production down 12.8% in April versus 2008. And as […]

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Difficult decisions loom on future US auto demand

By the end of May last year, 6.2m autos had been sold in the US market, each containing $2700 of chemicals (according to the ACC). The total sales value to the chemical industry was $16.8bn. So far this year, just 3.9m autos have been sold, with a value of $10.7bn. Recent downturns have always seen […]

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“Green shoots” likely to be “yellow weeds”

The full extent of the recent damage to chemical industry output can be seen in the above chart, based on new figures from the American Chemistry Council. The story is stark: • Global chemical output was down 14% in March, after falling off a cliff in Q4. The 1979-80 pattern repeated itself again, as the […]

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BASF sees “weak demand”, traders see recovery

BASF, the world’s largest chemical company, said today that they see “weak demand for chemical products” continuing through 2009. In response, plants and sites “will be closed or sold where necessary”. These are clear statements about the outlook, backed up by commitments to take action. Yet volumes and prices in financial markets are rising, as […]

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Germany’s industrial orders collapse 29%

There is little justice in today’s recession. Countries that saved hard, and avoided reckless lending, are seeing their economies collapse as fast as those that spent as if there was no tomorrow. Thus Germany is now following the path already trodden by other export-oriented economies, such as Japan and most of the emerging economies. As […]

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Brazil’s exports fall 29%

The emerging economies, which built their growth on exports to the West, are being badly hit by the global recession. Brazil, where poverty levels were at their lowest level for 30 years, is now seeing recent gains unwind. Its exports fell 29% in January, the biggest drop since 1991. This followed a terrible December, when […]

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GM, Chrysler’s US sales collapse

January’s US auto sales figures gave no hope that demand is yet bottoming out. Volumes were down 41% versus 2008. As the chart shows, the main pain was felt by GM and Chrysler, who saw sales down 49% and 55% respectively. A key factor in the downturn for both companies was a collapse in fleet […]

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