The Impact of Downstream Demand on the Chemical Industry

The chemical industry has faced significant challenges due to a chronic mismatch between oversupply, primarily from China, and weak global demand. This has led to substantial declines in sales and profits across many major companies, with highlighted examples like BASF and Dow struggling to achieve top-line growth amidst this downturn. The analysis suggests that while some companies managed to partly mitigate losses by focusing on cash preservation, the overall operating conditions have shown little sign of improvement, leaving many sectors still mired in a tough economic landscape. Additionally, the lack of positive growth in chemical consumption raises concerns about the industry's ability to recover in the near future.