A glimmer of hope. (Overview).

Chemical Market Reporter, March, 2003 by Chang, Joe

Rising costs and volatility continue to cloud the outlook for the petchems sector, as it moves out of the recent downturn. But an end to the gloom is in sight. Joe Chang of CMR explains. North America's petrochemicals industry has been mired in a trough since what was once deemed the bottom of the cycle in 1999.

But there appears to be a glimmer of sunshine on the horizon. Forced capital discipline following a disastrous 2001 and sluggish 2002, along with additional major plant closures later this year, could set the stage for a sustainable upswing in the petrochemical cycle in 2004 and a potential peak in 2005-06. However, in the near term, geopolitical uncertainty and steadily rising raw material and energy costs continue to weigh heavily on the...

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