Petrochemicals
UD Trucks and Kuwait Municipality signed a sales deal.
Global chemical supply and demand threatened by Middle East escalation This analysis from Will Beacham, Deputy Editor, ICIS (Independent Commodity Intelligence Services) Chemical Business, looks at the products that are heavily exposed to disruptions and the knock-on effects for the world’s already fragile manufacturing economy.
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s the threat of further military action in the Middle East looms large, disruptions in the Strait of Hormuz could seriously impact the global trade in chemicals and oil products. Military action leading to closure of the Strait of Hormuz between Iran and Saudi Arabia could seriously disrupt global trade in chemicals and oil products, with a knockon effect for the world’s already fragile manufacturing economy. The US killing of General Qasem Soleimani, head of the Iranian Revolutionary Guards’ overseas forces, on 3 January 2020 threatens to further stoke up tensions in the Middle East. Iran retaliated on 8 January with missile strikes against US forces in Iraq.
42 FEBRUARY 2020
Vital shipping lane The Strait of Hormuz is an important shipping lane, linking Middle East oil and chemical exporters to the rest of the world. More than 20% of global petroleum liquids and a significant proportion of chemicals are transported through the Strait. According to ICIS senior consultant, Asia, John Richardson, quoting ICIS Supply & Demand database forecasts for polyolefins exports in 2020, this includes 4.1m tonnes of Middle East high-density polyethylene (HDPE) production due to be exported via the Strait. For chemical markets already in oversupply, such as polyolefins and isocyanates, any supply shock from the
ICIS (Independent Commodity Intelligence Services) provides intelligence for the global petrochemical, energy and fertilizer markets. Itis the world’s largest petrochemicals market information provider, with divisions spanning energy and fertilizers. Will Beacham is Deputy Editor on ICIS Chemical Business. He writes about global chemical industry trends for ICIS since 2000, as part of its 250-strong global editorial team.
