In this edition of Duff & Phelps' European Chemicals
Update, we evaluate current trends for key raw materials,
prevailing investor sentiment and valuation developments in the
featured Industrial Specialty sub-sector.
Our top insights are detailed below:
Key raw materials in the chemicals sector were impacted by fears
over an economic slowdown in Q4 2018, with petrochemicals feedstock
being the most affected. Additionally, oil supply will likely
continue to outpace demand throughout 2019. U.S. shale will likely
lead in output growth, even as slower economic growth in some
countries further suppresses demand.
Next, the ifo Business Climate Index for the German chemical
industry entered a downswing as current conditions and expectations
deteriorated in Q4 2018, falling 32% month-on-month. This is the
first time the Index indicated a downswing since H1 2016.
