• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    2023 CEO Forum

    The 2023 Automotive Coatings Market

    Color Trends in the Paint and Coatings Industry

    2023 European Coatings Show EXHIBITOR SHOWCASE

    Industry is Looking Forward to the 2023 European Coatings Show
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    Norwegian Cruise Line Goes Biocide-Free with Nippon Paint Marine's AQUATERRAS

    ChemQuest Names Carla McBain a Director

    BASF Invests in Expansion of Polymer Dispersions Plant in Daya Bay, China

    Stahl Completes Acquisition of ICP Industrial Solutions Group

    Interpon Powder Coatings on Dubai’s Latest Luxury Hotel ​
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Norwegian Cruise Line Goes Biocide-Free with Nippon Paint Marine's AQUATERRAS

    Stahl Completes Acquisition of ICP Industrial Solutions Group

    The 2023 Automotive Coatings Market

    Color Trends in the Paint and Coatings Industry

    Miller Paint Partners with Portland Boutique Woonwinkel for 2023 Spring Color Trends
    Additives
    Binders
    Pigments
    Solvents

    BASF Invests in Expansion of Polymer Dispersions Plant in Daya Bay, China

    Evonik Invests in Interface Polymers

    Evonik Launches New TEGO Flow 380 Leveling Agent for Automotive Clear Coatings

    Hexigone’s Smart Inhibitors Reach Mexico via First Quality Chemicals

    BASF Starts Sovermol Production in Mangalore, India
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Arkema

    Clariant Additives

    EPS

    Shepherd Color Company, The

    Active Minerals
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Southern Society for Coatings Technology Annual Meeting and Technology Conference

    Eastern Coatings Show

    CPCA Annual Conference

    66th Annual Sink or Swim

    Middle East Coatings Show
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Arkema

    Clariant Additives

    EPS

    Shepherd Color Company, The

    Active Minerals
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Glossary
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Uncertainty Now Could Tighten Chemical Markets Later

    ...

    04.18.16
    Concerns around volatile energy and economic scenarios appears to have caused a collective pause in new chemical industry investment, said Mark Eramo, vice president with IHS Chemical. That delay could tighten markets during the next few years.

    Familiar patterns in energy markets and the global economy between 2009 and 2014 have been upset. During that period, energy and feedstock markets were characterized by high crude prices globally and lower U.S. natural gas prices as a result of shale. The economy, meanwhile, was defined by strong growth in the developing world led by the "BRIC" countries--Brazil, Russia, India, China.

    “Today, those paradigms have been shattered,” Eramo said. "Crude oil prices have fallen sharply. India’s economy is still growing strongly, but Russia and Brazil struggle with recession and China’s economy is undergoing a number of changes, the full impact of which are still unknown, Eramo adds. "Energy and economic forecasts are two basic pillars that drive decisions about how and where I’m going to invest if I’m running a chemical company,” Eramo said. “They’ve changed, and a reassessment of capital spending is underway.”

    Basic chemical capacity additions will continue to be dominated by China, but its pace will moderate during the next 10 years. The United States will see the second-largest build up of basic chemical capacity between 2015 and 2025 in a shale-driven resurgence. Low-cost feedstocks are bringing back methanol and ethylene capacity into the United States, while China is adding significant chlorine, methanol, and propylene capacity through 2025. The Middle East will continue to add capacity, but expansions have levelled off after a surge in the 2000s. India will also add significant capacity, while Indonesia, Malaysia, and Vietnam will join the top-10 ranking of countries adding basic chemicals capacity.

    IHS Chemical forecasts that demand for basic chemicals--ethylene, propylene, methanol, benzene, para-xylene, and chlorine -- will grow 4%/year through 2020. Ethylene, propylene, and methanol are expected to grow at faster-than-GDP rates with more modest growth forecast for benzene, chlorine, and para-xylene.

    Capacity additions during the next few years are largely set, but delays could have implications for 2020 and beyond. “Board room decisions require higher returns for approval given near term uncertainties,” Eramo said. “Risk premiums have gone up, causing some to defer approvals.” Uncertainty is likely to persist until energy markets stabilize and signal more predictable outcomes. “The high level of uncertainty around energy and economic fundamentals present planners with difficult scenarios for identifying the best path forward,” Eramo said. “Investment decisions placed ‘on hold’ could lead to supply limitations in 2020 and beyond. If we have sustained global economic growth and accelerated demand growth along with it, you could see certain sectors facing very tight market conditions.”
    Related Searches
    • chemical
    • china
    Suggested For You
    China Dominates Global Methanol Capacity and Demand, Surpassing North America and Western Europe China Dominates Global Methanol Capacity and Demand, Surpassing North America and Western Europe
    US Demand for Solvents to Reach 9.6 Billion Pounds US Demand for Solvents to Reach 9.6 Billion Pounds
    US Demand for Solvents to Reach 9.6 Billion Pounds US Demand for Solvents to Reach 9.6 Billion Pounds
    IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil
    Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers
    Growing Latin American Demand for Polyethylene Far Outstrips its Production and Planned Additions Growing Latin American Demand for Polyethylene Far Outstrips its Production and Planned Additions
    BASF with Slightly Lower Earnings Before Special Items; Outlook 2016 Confirmed BASF with Slightly Lower Earnings Before Special Items; Outlook 2016 Confirmed
    Oil Collapse, China Heighten Long-term Structural Change in Chemical Industry Oil Collapse, China Heighten Long-term Structural Change in Chemical Industry
    IHS: Despite FDA Phase-out of Partially Hydrogenated Oils, Global Outlook Remains Positive IHS: Despite FDA Phase-out of Partially Hydrogenated Oils, Global Outlook Remains Positive
    BASF: BASF: 'Market Environment Remains Volatile and Challenging'
    IHS: Decline in Oil Price Leads to Near-Term Market Weakness, Ultimately Drives Higher Demand IHS: Decline in Oil Price Leads to Near-Term Market Weakness, Ultimately Drives Higher Demand
    IHS: Diversification, Innovation and Strategic Partnerships Key for SABIC to Maintain Growth IHS: Diversification, Innovation and Strategic Partnerships Key for SABIC to Maintain Growth
    Iranian Methanol Capacity – Life After Sanctions Iranian Methanol Capacity – Life After Sanctions
    IHS Chemical Comments on Tianjin Explosion IHS Chemical Comments on Tianjin Explosion

    Related Expert's Opinion

    • China Dominates Global Methanol Capacity and Demand, Surpassing North America and Western Europe

      ...
      09.01.16

    • Adhesives and Sealants | Breaking News
      US Demand for Solvents to Reach 9.6 Billion Pounds

      US Demand for Solvents to Reach 9.6 Billion Pounds

      ...
      07.28.16

    • Adhesives and Sealants | Breaking News
      US Demand for Solvents to Reach 9.6 Billion Pounds

      US Demand for Solvents to Reach 9.6 Billion Pounds

      ...
      07.28.16


    • IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil

      ...
      07.06.16

    • Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers

      ...
      06.21.16

    Loading, Please Wait..
    Trending
    • Interpon Powder Coatings On Dubai’s Latest Luxury Hotel ​
    • BASF Invests In Expansion Of Polymer Dispersions Plant In Daya Bay, China
    • Univar Solutions To Be Acquired By Apollo Funds For $8.1B
    • AkzoNobel Launches Aerofleet Coatings Management
    • Evonik Invests In Interface Polymers
    Breaking News
    • Norwegian Cruise Line Goes Biocide-Free with Nippon Paint Marine's AQUATERRAS
    • ChemQuest Names Carla McBain a Director
    • BASF Invests in Expansion of Polymer Dispersions Plant in Daya Bay, China
    • Stahl Completes Acquisition of ICP Industrial Solutions Group
    • Interpon Powder Coatings on Dubai’s Latest Luxury Hotel ​
    View Breaking News >
    CURRENT ISSUE

    March 2023

    • 2023 CEO Forum
    • The 2023 Automotive Coatings Market
    • Color Trends in the Paint and Coatings Industry
    • 2023 European Coatings Show EXHIBITOR SHOWCASE
    • Industry is Looking Forward to the 2023 European Coatings Show
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Nordic Naturals Debuts Probiotic Line in More Than 375 Sprouts Farmer’s Markets
    DolCas Biotech's Curcugen Featured in Beauty-From-Within Supplement
    NOW Tests Bromelain Supplements Purchased on Amazon
    Coatings World

    Latest Breaking News From Coatings World

    Norwegian Cruise Line Goes Biocide-Free with Nippon Paint Marine's AQUATERRAS
    ChemQuest Names Carla McBain a Director
    BASF Invests in Expansion of Polymer Dispersions Plant in Daya Bay, China
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    SurgVision's EXPLORER AIR II Gets FDA OK
    Brainomix's Flagship Stroke AI Imaging Software OK'ed
    Cue Health Nabs EUA for Molecular Mpox Test
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Diabeloop, Novo Nordisk Partner on Next-Gen Insulin Pens
    Jost Chemical Increases Manufacturing Capacity of Sodium Caprate, Sodium Caprylate
    Stevanato Group, Thermo Fisher Partner to Bring On-Body Delivery System to Market
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Mary Kay Earns Forest Stewardship Council Certification
    IPSY Teams Up with Anastasia Soare for Icon Box
    Tattoo Skincare Brand Mad Rabbit Raises $10 Million—Mark Cuban is an Investor
    Happi

    Latest Breaking News From Happi

    Hair Supplement Brand Viviscal Adds Topical Hair Care Line for Women
    TheraBreath Launches Mouthwash Formulated for Kids
    Divi Appoints Erica Randerson Vice President of E-Commerce
    Ink World

    Latest Breaking News From Ink World

    WestRock Holds Ground-Breaking on New Corrugated Box Plant in Washington
    MNYPIA Names John Hrdlick 2023 Anthony Mauriello Award Honoree
    Amcor’s Sustainability Commitment Receives ‘AA’ Rating by MSCI
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Jones Healthcare invests in Gallus Labelmaster from Heidelberg
    Innovia presents sustainable label films at Interpack
    Creation helps Whitworths with solvent-free flexible packaging prepress
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Kimberly-Clark Ranks Third Among 100 Most Sustainable Companies
    Weekly Recap: TerraCycle Launches Diaper Program, Ahlstrom to Divest or Shutter Stenay Plant & More
    Mativ Names CFO
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Loci Orthopaedics Earns New Patent for Thumb Base Joint Implant System
    Study: Running Does Not Increase Arthritis Risk
    Study Highlights the Positive Clinical Outcomes of Medacta’s MySpine System
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Retrofittable Electrochromic Films for Windows and Glass Facades
    Tekscan Launches New High-Speed Tire Pressure Testing System
    Schreiner PrinTrust Produces RFID-Enabled Labels for seventhings

    Copyright © 2023 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login