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.
Click here to listen to the podcast
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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