The background
Although prices for the main raw materials used in chemical production rose in 2017, they remain low by historical standards, as do crude oil prices. Activity generally remains below potential, having peaked back in 2006. US producers have a built-in advantage, with ready access to cheap natural gas.
The future
Market growth is expected in Western Europe, although the consequences of Brexit could potentially put a brake on this, because so much of Europe’s production is for home consumption. In the US, demand is set to rise, despite struggling automotive and home building sectors. In China Coface analysts anticipate restrained growth with industrial production slowing and general overcapacity in petrochemicals.
In an industry so influenced by oil and natural gas prices, as well as economic factors, the need to protect your cash flow and avoid bad debt via Coface credit insurance is clear. This is also an industry where the in-depth market knowledge of our expert team can give you a competitive edge.
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