Expect global inflation, weakened GDP growth, and reduced consumer confidence:
- Concerns regarding economic slowdown, coupled with a rise in interest rates by major central banks, are expected to weigh down on consumer demand, exerting downward pressure on chemical commodity prices.
Expect oil price volatility and high global gas prices:
- With oil and natural gas being the key feedstock for many chemical commodities, continued volatility in oil and natural gas markets due to conflict in the Black Sea region indicates continued volatility in chemical commodity prices.
Responses to fragile supply chains and risks stemming from health and geopolitical shocks expected:
- Continued disruptions have revealed the fragility of chemical supply chains. Consequently, we expect to see increasing regionalisation of key chemical commodities to combat supply chain bottlenecks.
- On the flipside, we expect this will open up opportunities for global buyers to leverage global supply markets to obtain better pricing.
An increased sustainability focus amongst consumers:
- An increased interest in sustainability is expected amongst consumers. This, combined with a wave of sustainability regulations globally, will lead chemical manufacturers to invest heavily in sustainable production.
- Shifting away from oil and natural gas towards more sustainable component sources may provide more stability in chemical commodity prices.