INEOS announce €1bn inventory loss in Q4

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In early October, I forecast that we were about to revisit “the scariest moment of my 30 year chemical career”, adding that:

“The moment the blog has long feared, and warned about, may be about to arrive. It appears that we may be about to revisit 1980, when for some weeks it seemed that demand for many petchem products had simply stopped.”

I also repeated this forecast in an EPCA interview with ICIS radio.

Sadly, the coming results season is likely to demonstrate that my forecast was all too prescient. INEOS have already announced inventory holding losses of €1bn ($1.3bn) in Q4.

As I wrote in October, “If your Board would like to talk about the current situation, and to discuss how to manage it, please contact me. I will be happy to use my experience to try and help.”

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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