Asian chemicals cautiously optimistic in 2012
Despite the challenges faced by the global economy, Asia’s chemical industry will continue to maintain strong growth. Paul Hanik, head of global chemical business at KPMG, said last week: “Although the uncertainty of the global macroeconomic outlook will have a greater negative impact on the global chemical industry in 2012, we continue to be optimistic about the growth prospects of the chemical industry in Asia. The global chemical industry will continue to shift to emerging markets."
Hanik further pointed out that the strong GDP growth rate in Asia will stimulate further growth in the chemical industry, while chemical companies in developed countries are increasing their investment in Asia to seek further business growth. The extension of the petrochemical industrial chain of existing refineries in Thailand, Indonesia and Vietnam will also stimulate the rapid growth of the chemical industry.
The American Chemical Industry Council (ACC) expects that the chemical industry in South Korea, Singapore and China Taiwan will maintain a good momentum of growth in 2012. In Singapore, chemical production will increase by 5% in 2012, South Korea by 4%, and China's Taiwan by 3.8%, not including Japan's Asia Pacific chemical production growth of 7.9%.
Norbert Merlin, partner of KPMG China, said that KPMG's cautiously optimistic attitude towards Asian chemicals in 2012 is expected to increase faster than GDP growth, but Asian chemical industry will also face some challenges, including raw material prices. Increased volatility and fluctuations in demand due to uncertainty in the global economic outlook.
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