Engineering News

Fitch sees chemicals industry poised for recovery
December 16, 2009, 3:41 pm EST

Fitch Ratings expects gradual, fragile 2010 recovery in global chemicals industry

NEW YORK (AP) -- The global chemicals industry is poised for a gradual recovery in 2010, with stronger demand in China and South America tempered by constrained Western European and North American markets, Fitch Ratings said Wednesday.

"The recovery in demand for chemical products will remain fragile next year with significant regional disparities in growth trends reflecting varying economic expansion forecasts," the rating company said.

Fitch expects growth rates for the North American chemicals industry in the low-to mid-single digits in 2010.

"At this rate, the industry will likely need two to three years before North American chemicals product output will match pre-crisis levels," Fitch said.

Other factors slowing the sector's recovery include excess capacity and the end of stimulus packages.

Furthermore, Fitch said new capacity coming online in the Middle East -- where lower raw material prices translate to cost advantages -- could threaten Western European and North American facilities.

The ratings agency predicted stiff competition for less advanced chemical products. Companies with a lot of these products in their portfolio will change their strategy to purely low-cost manufacturing to stay competitive. Companies with high value-adding, innovative product portfolios, in contrast, will focus on research and development.

Shares of chemical companies rose with the broader market in afternoon trading. Dow Chemical Co. shares climbed 52 cents, or 2 percent, to $27.29. DuPont shares rose 39 cents to $32.58.

Source: Associated Press

Engineering News Archive

 
// CAREER RESOURCES

Applicant Procedures
Job Seekers
Resume Help
Professional Organizations
Engineering Career Information
Engineering Colleges

// WHAT WE DO
Recruiters for
Professionals in the Chemical
& Pharmaceutical Industries
We recruit exclusively for Engineers and Operations/Maintenance Management Personnel in the following areas:
Specialty chemicals
Bulk chemicals
Commodity Chemicals
Petrochemicals
Fine chemicals
Agrochemicals
Industrial gases
Surfactants
Fertilizers
Solvents
Coatings
Polymers
Pharmaceuticals
Refinery
Career Center | FAQs | Privacy
SESI Corporate Headquarters (954)755-3121 ext 109
© Search Enterprises, Inc. All rights reserved.
Submit a Job About Search Enterprises Submit a Resume Candidates Job Opportunities Search Enterprises Home