Chemtura Corp (fka CHMT)

[Madclown]

V shaped recovery for Polyvinyl Chloride (PVC), you don't say...

Full article from Calimero's post below:

V-shaped recovery in the cards for chemicals - economist

BOSTON (ICIS news)--The global chemical industry is undergoing a V-shaped recovery, following industrial production, which is expected to last at least through the third and fourth quarters, the chief economist of the American Chemistry Council (ACC) said on Thursday.

“Destocking is ending and leading indicators suggest a trough with recovery of final demand and inventory swing engendering an upturn,” said ACC chief economist Kevin Swift at the Chemical Purchasing Summit organised by ICIS and Purchasing magazine.

“We see a V-shaped recovery into Q3 and Q4, and more signs of an industrial recovery in 2010,” he added.

The economist said he is seeing V-shaped recoveries across the board in plastic resins, chlorine, polypropylene (PP) and polyvinyl chloride (PVC).

“Chemical recoveries have historically been V-shaped,” he added.

For 2009, global chemical production is expected to fall 5.9% before recovering to 3.5% growth in 2010, led by strong growth in Asia Pacific, Latin America, Eastern Europe and Africa & Middle East regions, said Swift.

US chemical production is projected to decline 7.2% in 2009 and bounce back 1.7% in 2010. Excluding pharmaceuticals, chemical production will decline 10.7% in 2009 and recover by 1.5% in 2010, he noted.

The recovery in the overall economy from the depths of late 2008 and early 2009 is driving chemical demand, said Swift.

“This time last year we stood at the abyss and there were the sounds of shoes dropping - Lehman Brothers, then AIG. Things were spinning out of control,” he recalled.

“But now, the picture is clearer. A virtuous cycle is emerging and the economy will return to a growth trajectory, with a stabilising and improving housing sector and consumer spending,” he added.

However, the sustainability of any long-term recovery will depend on final demand from consumer spending and investment, Swift noted.

http://www.icis.com/Articles/2009/09/17/9248416/v-shaped-recovery-in-the-cards-for-chemicals-economist.html