Shell, BASF, ACC warn on US downturn

‘The sharp drop in housing starts and the developing credit crisis will flow into the cracker business’, according to Shell Chemical’s CEO Stacy Methvin. She added that ‘the housing crisis is more far-reaching than anyone anticipated’.

Similarly, BASF is now more cautious about the potential impact of the US recession on its petchem business. Peter Cella, VP petchems N America, told ICIS news that the ‘impact thus far has not filtered down to demand for our products (but) it could be coming. There could be a delayed effect three, six, nine months out that we’re just not seeing yet.’

The ACC’s weekly report also notes that JP Morgan’s global Manufacturing Index has slipped to its lowest level since May 2003, as America’s recession impacts the rest of the world. As the ACC comment, ‘so much for decoupling!’

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. 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.

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