Asian Chemical Connections
As China’s government attempts to rein in spiralling levels of personal and corporate debt by tightening credit limits in the official and shadow banking sector, chemical producers in Asia are feeling the pinch.
As manufacturers – used to easy credit conditions – struggle to finance or refinance their debt requirements, activity is slowing, and demand for chemicals is declining. Add to that the ramp up in China capacity expected this year and the outlook appears weak in many products.
INSIGHT: Anxiety over global demand for crude centres on China
“Part of China’s ‘new normal’ is that ‘big stimulus’ won’t be called for every time growth decelerates.”
VIDEO: ICIS Special Report - C3 value chain, early autumn