Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Chemical Economy Slows

by Marc S. Reisch
October 5, 2015 | A version of this story appeared in Volume 93, Issue 39

Signs are mounting that the chemical economy is slowing. Speaking at a recent investors meeting, BASF Chairman Kurt Bock said low oil prices and geopolitical developments have led BASF to revise downward its earlier expectations for annual global chemical production growth between 2015 and 2020 to 3.9% from 4.0%. Expected growth in industrial production is down to 3.5% from the firm’s earlier 3.7% prediction, Bock also said. More immediate signs of a slowdown come from the American Chemistry Council and Huntsman Corp. ACC reports that its Chemical Activity Barometer, a leading indicator of U.S. chemical business activity, dropped 0.4% in September after a 0.2% decline in August. Kevin Swift, ACC’s chief economist, says that chemical and other stock prices and “product prices all continue to suffer, signaling a likely slowdown in broader economic activity.” Separately, Huntsman Corp. warned investors that trends would hurt third-quarter earnings when it reports them to shareholders in a few weeks. Among those trends are “headwinds” from a strong U.S. dollar, soft demand in Asia, and lower margins on certain commodity products because of lower oil prices.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.