Chemicals downturn began in 2017 and has accelerated

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 stimulus for automotive, construction
- 2008/9 China implemented huge package to compensate for collapsed export markets
- 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.