Coronavirus impact may accelerate China’s self-sufficiency in chemicals, leaving the global industry struggling with overcapacity as that huge export market closes.
- Industry pulling out of depths of downturn
- But risk of second wave is high, infection rates rising globally
- China’s drive for chemicals self-sufficiency will increase
- China PX imports could fall from 16m tonnes to 9m tonnes in 2020
- China refineries likely to run hard, flooding markets with gasoline and other products
- Refinery/petrochemical interface under pressure
- Global economy was in trouble before Coronavirus
- Paradigm shifts accelerating – shift from fossil fuels, regional value chains, service-driven business models
- Europe isocyanate markets gradually improving from very low levels
- Demand from automotive still poor
- Chemicals face changing auto market on switch to electric, autonomous
Listen to this podcast interview with Paul Hodges, chairman at consultancy International eChem; John Richardson, ICIS senior consultant, Asia; ICIS Insight Editor Nigel Davis and Fergus Jensen who reports on Europe isocyanates.