Chemical Industry Poised For More Growth In 2011

The global chemical industry will see robust growth in 2011 because of higher sales volumes in developing markets and higher prices in the U.S. and Western Europe, according to consulting firm Deloitte. In its midyear outlook, Deloitte says chemical revenues will grow by 7.9% compared with 2010, boosted in large part by a 12.1% growth in demand from China. By the end of the year, Deloitte forecasts, China will overtake the U.S. as the world’s largest chemical market. In addition, regional opportunities in India and Brazil will spur the creation of new firms and products. Meanwhile, growth is expected to reach a modest 3.5% in the U.S. and 3.3% in Europe. Healthy demand from the automotive, consumer electronics, and pharmaceutical industries will drive chemical sales; construction and aviation markets will continue to lag. Higher oil prices will work to the benefit of firms that can take advantage of cheaper natural gas feedstocks.