Moody’s sees negative outlook for Asian petchems

Currencies, Economic growth, Oil markets

Its not just the World Bank that is concerned about the outlook for East Asia. Today, Moody’s (the ratings agency) says it has a negative outlook for the petrochemical sector over the next 12-18 months. It concludes:

• “In response to weakening global demand, Asia Pacific’s petrochemical companies are rapidly shedding inventory and delaying their procurement of feedstock, which has amplified the sector’s current down-cycle.
• “The negative outlook in the Asia-Pacific petrochemical sector reflects petrochemical manufacturers’ deteriorating margins, which in turn result from weak demand, a slowing economic environment, and new capacity coming online in the Middle East and China in 2009 and beyond.”

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