BARCELONA (ICIS)—The downturn for global chemicals began back in December 2017, and has accelerated through the pandemic, coupled with a lack of visibility on future demand patterns.
- Muted bounce back is underway for chemicals
- Chemical capacity utilisation has fallen since December 2017
- Accelerated during pandemic, and has not recovered
- 2008/9 saw different stimulus to current pandemic
- 2008/9 China implemented huge package to compensate for collapsed exports
- Aging populations will now drag on growth
- Sustainability, affordability now key trends
- Emerging economies held back by poor export markets, lack of governance
- China needs to reform its economy to allow a middle class to emerge
- Coatings hit badly by downturn in commercial property
- Chemicals must move on from GDP-related demand growth assumptions
- Forensic focus on new demand patterns can identify opportunities
- Companies must accept the lack of visibility as a starting point
Listen to this podcast interview with John Richardson, ICIS senior consultant, Asia and Paul Hodges, chairman of International eChem.
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Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.
Interview by Will Beacham