The chemical industry continues to struggle with the lingering pandemic disruptions and the supply chain issues bolstered by the war in Ukraine. Moreover, a return to more service-focused consumption is pushing the plastics demand outlook lower, while the inflationary pressures are reducing demand from non-FMCG sectors.
The stubbornly high inflation and the consecutive rate hikes are making things worse. According to Fitch Ratings, slower global economic growth and a mild U.S. recession in 2023 will weaken chemical demand. Also, chemical sector revenues and profitability are expected to face pressure from weaker pricing, driven by rising interest rates, softer end-market demand, and higher input costs.
