PODCAST: Pandemic to accelerate China chems self-sufficiency, global overcapacity

BARCELONA (ICIS)–The coronavirus pandemic impact may accelerate China’s self-sufficiency in chemicals, leaving the global industry struggling with overcapacity as that huge export market closes.

• Industry pulling out of depths of downturn
• But risk of second wave is high, infection rates rising globally
• China paraxylene (PX) imports could fall from 16m tonnes to 9m tonnes in 2020
• China refineries likely to run hard, flooding markets with gasoline and other products
• Refinery/petrochemical interface under pressure
• Global economy was in trouble before pandemic
• Paradigm shifts accelerating – shift from fossil fuels, regional value chains, service-driven business models
• Europe isocyanate markets gradually improving from very low levels
• Demand from automotive still poor
• Chemicals face changing auto market on switch to electric, autonomous

Listen to this podcast interview with Paul Hodges, chairman at consultancy International eChem; John Richardson, ICIS senior consultant, Asia;  ICIS Insight Editor Nigel Davis; and Fergus Jensen,  Europe Editor covering isocyanates and phenol/acetone.

Interview by Will Beacham

Read more analysis of chemical market trends in this week’s ICIS Chemical Business.

ICIS is organising regular updates to help the industry in this time of crisis. Register here 

Read Paul Hodges ICIS Chemicals and the Economy blog

Click here to read the latest free pH Report Outlook newsletter