PODCAST: Chems firms face a new dawn as low-inflation era comes to an end
LONDON (ICIS)–Chemicals players are waking up to a new era for the global economy, where supportive monetary policy and rock-bottom interest rates give way to a lengthy period of high inflation, intensified by the Russia-Ukraine war.
-Energy pricing is at levels that have always
historically led to recession
– Potential loss of Russia supplies could lead to energy shortages in Autumn
-Players should be planning for immediate impact and long-term changes
– Supportive market conditions seen over the last decade likely to evaporate as inflation, costs and interest rates shoot up, shifting into a period of lasting inflation
-Developing world facing rising prices and food shortages
-Years of developing market demand growth could be lost
– New climate could push companies to more defensive stances
– The move towards smaller entities with more defined focuses could shift back towards a trend to vertical integration
In this Think Tank podcast, Tom Brown interviews ICIS senior consultant for Asia John Richardson, and New Normal Consulting chairman Paul Hodges.
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.
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Read Paul Hodges and John Richardson’s ICIS blogs.