IHS: Demand for construction vehicles and other vehicles has generally rebounded

China Coatings Network
: IHS Chemical's latest report says revenues and profits in the specialty chemicals industry should grow steadily in 2015. This is because demand in the end market continues to perform strongly, while the sharp drop in oil prices has reduced raw material costs. IHS Chemical expects the global market for specialty chemicals to grow at an average annual rate of 3.8% by 2018, with North America, Western Europe and Japan growing at an average annual rate of 2%. That's slightly faster than global GDP growth over the same period. Major specialty chemicals, including
coatings
personal care products, and health and nutrition products, will grow in 2015.
the outlook for the specialty chemicals market varies from region to region around the world in 2015, but one region is considered the most advantageous, namely North America. "The outlook for the specialty chemicals market in North America is promising," said Craig Rogerson, chairman and CEO of Cojua. This is because North America has a cost advantage on the one hand, and demand is growing rapidly on the other. Joe
, vice president of marketing at Dow Chemical, said: "The rebound in the North American construction and automotive industries will continue to support the region's dedicated chemical producers. North American residential and non-residential demand is expected to grow at a rate of about 5% in 2015. The
outside North America is very different, depending on region and industry. For example, Cojua's business in China is relatively weak because it is concentrated in the still-weak electronics market. China's electronics sector is constrained by continued economic downturns in Europe and weak domestic demand. "China's growth is more dependent on domestic consumer demand, but so far there has been no significant change," Mr Rogerson said.
I'm not worried about China, which is still growing well at 6 to 7 per cent, despite a slight slowdown," said Michael McGarry, chief operating officer of PPG Industries. China, the United States and Mexico were the three markets with the strongest performance in the PPG industry. PPG Industries' customers in China are mainly in the coatings business. Global
Network understands
sector is benefiting from continued growth in consumer demand for automotive, furniture and electrical appliances in China. PPG Industries is seeking steady growth in its coatings business. Mr McGarry said the mass production of new aircraft from Boeing and Airbus meant there would be very strong growth in its aviation coatings business. Automotive Labeling Production (OEM) continues to perform well. However, the company's packaging coatings business underperformed the automotive, aerospace and
building
businesses, but growth is still expected.
strong performance in the automotive market will be good for most specialty chemicals, not just coatings. Mr Rogerson said increased car production and new engine technology were good for Cojua's lubricants and flame retardant business, while more electronics were being used in cars. These electronics often require better-performing flame retardants. This will create opportunities for the flame retardant industry.
same time, Fidelity forecasts solid growth in health and nutrition business demand and relatively stable growth in demand for agrochemicals. Pierre Brondeau, CEO and chairman of the board of directors, said bad weather in 2014 had affected the growth of agrochemicals, but the market for agrochemicals was expected to remain essentially flat in 2015 compared with the previous year due to oversupply of some key crops.
fall in international oil prices, while more beneficial than harmful to the specialized chemicals industry, will also bring some uncertainty. Oilfield chemicals, for example, which have been growing well in recent years, will experience a cold snap. The U.S. Chemical Industry Council (ACC) said the field chemicals industry experienced double-digit growth for most of 2014, but the recent rapid decline in oil prices will have a significant negative impact on the industry. Emmanuel Butstraen, chairman of Solvay Novecare, said the company had invested heavily in oilfield chemicals, but the outlook was difficult to predict.
for other specialized chemicals, the impact of falling oil prices may depend on the factors behind them. While cheap oil should lower raw material costs, a downturn in the global economy could lead to lower demand. "A rapid drop in oil prices could signal weakness in the global economy, which is clearly not good for us," Mr Rogerson said. If oil prices fall gradually, it will be good for specialty chemical companies, but such a rapid decline could mean further weakness in the global economy or a financial crisis. While economic growth has been lower than expected in some areas, the drop in oil prices may spread to others. ”