Entries from Chemicals & The Economy tagged with 'BASF'
UK downturn follows the 1930/34 path
Politicians and analysts often focus on selling dreams. Otherwise, we might not be tempted to buy their promises of better times ahead. But those running businesses have to remain realistic. BASF's CEO, Jurgen Hambrecht, did exactly that in his comments...
Insights from LyondellBasell and BASF
Recent comments from LyondellBasell's COO, and BASF's CEO, seem worth highlighting as we come to the end of the results season. Ed Dineen noted that China's polyethylene demand seems partly linked to changes in crude oil pricing, "It turned down...
Companies remain cautious on the outlook
The good news is that the stabilisation seen in Q2 has been maintained. But companies remain cautious on the outlook, to judge from Q3 reports. CEOs are sceptical about the impact of government stimulus efforts in the West, and fear...
China imposes 36% nylon tariff
Protectionism continues to build, as unemployment rises around the world. ICIS news reports China has imposed tariffs of up to 36% on nylon 6. BASF will suffer a 30.4% tariff on US exports, and Honeywell 36.2%. Last month, of course,...
European refining margins drop 85%
Our major Feedstocks for Profit Study last year foresaw difficult times ahead for European refiners. Now it seems this forecast by our partners, refining experts Wood Mackenzie, is coming true. Total, Europe's largest refiner, today reported that European refining margins...
No sign of any upturn
This week's company results have been keenly awaited, as the industry seeks to form a view on what happens next to demand and profits. My new IeC colleague Paul Satchell reviews them, from the point of view of a highly-experienced...
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...
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...
Difficult times call for tough decisions
Downturns are difficult times. There is always the hope that markets might improve, and this can delay the implementation of tough decisions on plant closures. Nobody wants to shut down, and then see a competitor benefit from an improving market....
BASF - the German oil and gas company
BASF's reported results for 2008 show that its profits are increasingly coming from the oil and gas sector. Geographically, it is becoming similarly dependent on its German operations. Agricultural and performance products put in a strong performance during the year,...
$26bn LyondellBasell restructuring hits legal minefield
Vita's restructuring was relatively simple from a legal point of view, as it just involved European rules. But Lyondell Chemical's bankruptcy filing last month under the US Chapter 11 process seems to have thrown up some very complex legal issues....
LyondellBasell files for bankruptcy
LyondellBasell has become the largest-ever chemical company bankruptcy, just 12 months after its formation. Its US operations (Lyondell Chemical Co), and Basell Germany Holdings GmbH, filed for Chapter 11 protection in New York tonight. The company expects its other non-US...
The CEO's survival guide
The past few weeks have not been good for the chemical industry, with 4 major companies suffering significant problems: BASF warned that "customer demand in key markets has declined significantly" since October, and have temporarily shutdown 80 plants worldwide, whilst...
Is this a V, U, W, or L-shaped recession?
There is now general agreement that we are in a global recession. The World Bank's new 'Global Economic Prospects' report expects global GDP growth of only 2.5% this year, and just 0.9% growth for 2009. This is well below the...
The end of the beginning
Last week's BASF announcement marked the end of Phase One of the downturn. This began over a year ago, with the first signs of financial crisis. Now, we will move into Phase Two - a long, multi-year recession, which will...
BASF sees "massive decline"
6 weeks ago, I warned that "the scariest moment of my 30 year chemical career" was about to be repeated. This had been in 1980, when "for some weeks it seemed that demand for many petchem products had simply stopped"....
BASF warns on 2009
Back in August, the blog noted that BASF chairman Jurgen Hambrecht was forecasting that "the world will still continue to grow respectably", although he foresaw a temporary slowdown into H1 2009. Yesterday, however, this mood of relative optimism had disappeared...
August highlights
Many readers have been out of the office during August on a well-deserved break. I am therefore highlighting below the main postings over the past month, in the hope this will help them to catch up quickly on key developments...
BASF reduce 2008 global GDP forecast
BASF have now reduced their 2008 GDP forecast from 2.8% to 2.4%. This may sound a small amount, but it means it is now in line with the Global Downturn Scenario set out in our Feedstocks for Profit Study. Previously,...
Dow buys Rohm & Haas
Dow's potential interest in Rohm & Haas had been much rumoured since December, when it announced the petchem/polymer JV with Kuwait's PIC. That deal has yet to close, but further evidence of the growing link with Kuwait comes with...
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