Revenues are starting to pick up in the US chemicals industry, recovering from the 5.4% and 8.6% drops in value in 2002 and 2003 respectively. The market is currently in a period of growth and is expected to reach a value of $470 million by the end of 2004.
Base chemicals are the leading source of revenue for the US industry, with demand escalating despite price rises to combat the increasing cost of raw materials. The industry has benefited from the good economic conditions within the plastics and coating sectors, resulting in strong demand for ethylene and titanium dioxide.
Chemical manufacturers are increasing the efficiency of their operations, often enabling them to decrease staffing levels. One example is the growth of e-commerce, which has brought about supply chain improvements. The increasing price of hydrocarbons continues to be problematic for both manufacturers and end-users, acting as a weight on growth.
Leading companies in the US include Bayer, Dow Chemical, E. I. du Pont de Nemours (DuPont), Huntsman Corporation, ExxonMobil and BASF. Divestiture is a common feature in todays chemicals market as leading companies restructure in order to condense their business focus. BASF and Shell recently decided to sell Basell, their joint petrochemicals venture, placing a greater value on the potential investment capital than any future revenues from the industry leading Basell.
source:www.reuters.com
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