2013 wasn’t a good year for chemical plant reliability. As I noted a year ago, force majeures (when plants go offline unexpectedly) were close to a record level. Very worryingly, 2014 turns out to have been far worse as the chart above shows, based on the reports in ICIS news: 2014 saw a total of […]
Chemicals and the Economy
Companies see confidence ebb away as China slows, US cost advantage weakens
It feels like the end of an era, as we survey the usual quarterly update of chemical company results. For several years, there have been 3 or 4 key dimensions: US companies have been very profitable due to shale gas Asian companies have done well with volume, due to Chinese demand Middle Eastern companies have done well due to […]
3D printing to move manufacturing closer to the customer
15 years ago, it was fashionable to dismiss eBusiness as a fairy story. I remember those days well, as I had just raised $25m from major companies to fund its development in the chemical industry. Today, of course, eBusiness is everywhere. Nobody would dream of shaking their heads and dismissing the whole concept, as many did pre-2000. Which takes […]
Grangemouth develops cluster-based vision for the future
Exactly a year ago this week, the INEOS petrochemical business at Grangemouth in Scotland was facing closure. This would have been a disaster for the thousands of people employed directly and indirectly, as well as for Scotland. The blog was very closely involved in helping to achieve a successful outcome alongside the Scottish and UK governments, INEOS and the UNITE […]
European companies missing a major growth opportunity
We all know that the European economy is in a bad way. Sales and incomes are under pressure, and political risk is rising, whilst unemployment remains at high levels. Its very easy to get depressed about the outlook. We are also unlikely to get much help from policymakers. They remain in their world of mathematical models. These […]
Time to look forward, not back, for European petrochemicals
The European petrochemicals industry is in crisis. Operating rates dropped below 85% in H2 2008, and have never recovered. Now there is a danger that it faces death by a thousand cuts. This would be a tragedy for the European economy, as it would imply the loss of tens of thousands of well-paid jobs along […]
Unilever says Q2 market growth slows in emerging countries, developed countries weak
The global economy really isn’t getting any better. That’s the key conclusion from the blog’s quarterly survey of company results for Q2. Of course, some companies are doing well – either because of shale gas economics, or their own market positioning. But consumer giant Unilever summarised the general picture very well: “Market growth continued to slow in emerging […]
2 dates for the diary
Last May’s China Transformation webinar with John Richardson attracted great interest. We are therefore arranging a free follow-up webinar on Tuesday 9 September. As before, it will be run twice, to allow blog readers in different regions to attend. This ‘China Economic Transformation II’ webinar will cover these key areas: The likely impact on global markets of the […]
European chloralkali output hit as growth slows, Ukraine volumes drop
Chlorine and caustic soda are the bedrock of modern industry. They are used in everything from laundry products to pharmaceuticals. So changes in their business performance are a most valuable guide to what is happening in the real world in which we all live. The chart shows the detail of developments in the European industry, […]
Slide in Q2 operating rates is bad omen for H2 economic outlook
The chemical industry is the best leading indicator for the global economy. The slide in operating rates (OR%) around the world during the seasonally strong Q2 period. is a clear warning that global economic growth may be stalling. This should be a major wake-up call for anyone still hoping that growth may recover to the Boomer-led SuperCycle level. The latest update from […]