S&P Global Commodity Insights explores the macroeconomic trends shaping the global chemicals markets in the second half of 2024, spanning base chemicals, derivatives and shipping.
The report delves into market fundamentals, geopolitical factors, logistics and the broader economy, addressing challenges such as persistent overcapacity and low demand in some sectors.
Ethylene markets across regions face structurally weak demand and supply length, while phenol and acetone are also seeing weak buying interest in Asia and Europe. Meanwhile, recycled polymer markets see a mixed picture across regions due to a variety of regulatory frameworks, although there are bright spots in the US, despite ongoing macroeconomic headwinds.
The report also examines the potential impact of financial markets on the chemical sector as Europe anticipates falling interest rates, which would stimulate demand, whereas the US Federal Reserve might maintain or increase rates to cool the economy.
