PODCAST: Supply/demand mismatch dims prospects for chemicals recovery

BARCELONA (ICIS)–Petrochemical markets are likely to remain depressed while China and other countries continue to add significant capacity, unless big wave of closures and demand improvement help to achieve balance.

• Global capacity additions far outstrip demand growth
• China, Middle East, US likely to continue expansions
• China drove the petrochemical supercycle, but no longer
• China chemicals demand growth likely only 2-4%/year
• Prospect of global deflation
• Europe can focus on specialty chemicals, other niches

In this Think Tank podcast, Will Beacham interviews ICIS Insight editor Nigel Davis, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

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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