A whole generation has grown up with the idea that rates are always close to zero. And they also “know” that central banks will always print more money if needed.
Chemicals and the Economy
“Houston, we have a problem” – China’s move to self-sufficiency a game-changer for the plastics industry
Essentially, China’s move to self-sufficiency, and the need to deal with the issue of plastic waste, means there is no ‘business as usual’ option. Winners and Losers are already starting to emerge, as companies react to the challenges of today’s New Normal world.
Recycling can secure the future for US chemical companies
We have reached the endgame for today’s business models. Management teams need to start thinking ‘out of the box’ and develop new business models and strategies for the New Normal world.
Look for Winners and Losers in 2021
“There are decades where nothing happens; and there are weeks where decades happen”. Lenin’s famous insight was highly relevant to 2020. It was full of such weeks as the coronavirus pandemic became a catalyst for major paradigm shifts in the economy. Of course, some sceptics still expect a quick V-shaped return to ‘business as usual’, […]
Chemicals in the eye of the storm as UK heads for a WTO Brexit on 1 January
On Friday, the UK premier confirmed what many of us have expected for a long time. There is unlikely to be a trade deal with the EU27 when the UK leaves at the end of December: “We should get ready for 1 January with arrangements that are more like Australia’s – based on simple principles […]
Chemical industry has key role in helping to create a more sustainable world
The chemical industry has a critical role to play in enabling the world to “build back better” after the pandemic. That is the conclusion of the World Economic Forum’s Chemical and Advanced Materials Industry Action Group, for which I had the privilege of acting as an Expert Adviser. Its conclusions are as follows: “Where next? […]
Local circular plastics solutions to replace mega projects business model
NEW YORK (ICIS)–There will be a paradigm shift away from mega crackers producing massive volumes of plastics for export, and toward local recycling of plastic waste for local finished goods production. Joe Chang, editor of ICIS Chemical Business, summarises my presentation earlier this month to the Societe de Chimie Industrielle in New York. “The industry […]
Reshoring set to create Winners and Losers as advanced manufacturing takes over
Not many companies still operate in the same way as 500 years ago, or even 50 years ago. But in manufacturing, it’s quite common. As the pictures show, a visitor from Shakespeare’s time – or from after World War 2 – would feel at home if they visited many manufacturing sites today. The issue is […]
Polyethylene’s crisis will create Winners and Losers
Polyethylene markets (PE) are moving into a crisis, with margins in NE Asia already negative, as I have been forecasting. Scenario planning is now a matter of potential life or death for companies likely to be impacted over the next 12-18 months. The collapse in margins is already quite dramatic as the chart based on […]
Day of reckoning approaches for US polyethylene expansions, and the European industry
Planning for future demand in petrochemicals and polymers used to be relatively easy during the BabyBoomer SuperCycle. The team would consult the latest IMF forecast for global and regional growth, and then debate the right ratio to use to calculate product demand. For polyethylene (PE), the ratio was generally just above GDP at around 1.1x, […]
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