Dip and not a dive for the chemicals business cycle
The chemicals business cycle took a downturn last year, but the indications are that it was a dip and not a dive
After a strong recovery in 2010 and 2011, performance of the worldwide chemicals business deteriorated in 2012. Leading economies remained weak and, generally, demand-growth for chemical products was disappointing. But the large operators are optimistic that the downturn does not mark the start of a down-cycle. Although risks continue, there are forecasts that 2013 will see moderate growth. Petroleum Economist's latest annual analysis of the worldwide chemicals business, as viewed through the results of the large chemicals companies and the chemicals subsidiaries of the major oil companies, shows that profitability declined to 6.9% in 2012. The previous year had seen a historically-high 10.1
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