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Acknowledging that the chemical industry has gotten off to a “slow start” in 2023, Moody’s Investors Service expects industry conditions to improve in the second half of the year, according to a new report. The credit ratings agency bumped up its chemical outlook from “negative” to “stable.” It expects the chemical sector’s profits before taxes to decline by 9% during 2023 and return to 2022 levels next year. Prices for commodity chemicals have stabilized after a sharp drop in the second half of 2022. Europe still suffers from sluggish demand and energy prices that are too high for European chemical makers to compete with their US counterparts. China is recovering from last year’s strict COVID-19 lockdowns.
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