COVER STORY
WORLD CHEMICAL OUTLOOK
A
T THIS TIME LAST YEAR, C&EN SAID 2ΟΟ4 WOULD
be a year of expansion for the chemical industry in most parts of the world. It certainly was that and more. If C&EN erred in its forecasts, it was gener ally on the side of caution. This year, we feel pretty safe in saying that 2005 will con tinue the economic expansion that really got under way in 2004. But there probably will be some moderation—at least in rates of growth. In the U.S., once again demand for chemicals will increase, causing a rise in output and probably additional price escalation. Thus, sales for chemical producers should continue to grow, per haps not at the rates seen in 2004, but still the growth should be good. The same can be said for earnings. Canada, like the U.S., will continue to see strong demand and increasing profits with output up substantially, especially for products such as ethylene and polyethylene. In Latin America, economic activity continues to rebound— to the point that chemical producers are beginning to invest in new plants, with some big projects on the books. In Asia, chemical producers also are enjoying growth, even in
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Japan, which has been the financial laggard for the past fewyears. Double-digit earnings growth has once again become common in Japan, and barring any major problems, good earnings growth should continue. Last year, we said Europe's chemical in dustry would continue to lag behind much of the rest of the world, and this year we haven't changed our forecast much. Eu rope is seeing its exports cut because of the weak dollar. However, executives there ex pect production growth this year—just not as much as they might hope for. CONTENTS
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UNITED STATES
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CANADA
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EUROPE
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LATIN AMERICA!
ASIA-PACIFIC World Chemical Outlook was compiled by William J. Storck, senior correspondent, and Alexander H. Tiillo, associate editor, in New Jersey; Patricia L. Short, senior correspondent, in London; and Jean-François Tremblay, Hong Kong bureau head. C&EN
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