ICIS - chemical podcasts Episode 1359: PODCAST: "Can we stop pretending that key economies are fundamentally strong? They are not."
Jul 4, 2025
Joining the discussion is Paul Hodges, Chairman of New Normal Consulting and an expert in global economic trends impacting the chemical industry. He delves into the fragility of key economies, revealing that they aren't as robust as they seem. The rising challenge of China's polypropylene exports and the massive crisis due to European plant shutdowns is alarming. Hodges also highlights the urgent need for climate change action and how resilient innovation in the industry could pave the way for a sustainable future amidst these economic trials.
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China’s Polypropylene Oversupply Crisis
- China is flooding the global polypropylene market due to weaker domestic demand from demographics and real estate issues.
- This oversupply is disrupting global chemical markets and pressuring other producers worldwide.
Chemical Industry as Economic Indicator
- The chemical industry signals a significant global economic crisis, contrary to optimistic economic narratives.
- Plant closures in Europe, including top facilities, highlight deep economic weakness not widely recognized.
US Tariffs Threaten Asian Supply Chains
- US tariffs on Vietnam will hit Vietnam’s growth and could extend to other China plus one countries.
- Tariffs raise costs, disrupt supply chains, and risk undermining Asia’s role in global chemical demand.
