Issue 23/2020 - Global Chemicals Quick Facts

The German chemical and pharmaceutical industry is showing signs of recovery

The German Chemical Industry Association (VCI) said that after experiencing a contraction in the first half of the year caused by the epidemic, the German chemical and pharmaceutical industry rebounded in the third quarter, with production increasing by 1.
9% month-on-month and sales revenue increasing by 2.
8%
month-on-month.
However, there was a decrease
compared to the same period last year.
VCI said that production in the German chemical and pharmaceutical industry fell by 1.
7% year-on-year in the third quarter, but chemical production increased by 4.
9% compared with the previous quarter, mainly due to strong demand growth
.
In the third quarter, the average utilization rate of chemical and pharmaceutical capacity in Germany increased from 77.
5% in the second quarter to 81.
6%, almost returning to normal levels
.
Sales revenue from the German chemical and pharmaceutical industry increased 2.
8% sequentially to EUR 43.
6 billion ($51.
9 billion) in the third quarter, with domestic and export sales revenue increasing by 3.
5% and 2.
5%
sequentially, respectively.

Oil and gas EPC giants turn to clean energy

The strategies of the world's major oil and gas engineering, procurement and construction (EPC) companies are increasingly shifting to clean energy
.
According to GlobalData, the investment outlook for the oil and gas industry is bleak after the outbreak of the pandemic, and it is now seen as the best time
for major oil and gas companies to make strategic shifts in the energy transition.
The world's major oil and gas EPCs, traditionally dependent on projects within the oil and gas value chain, are now looking to renewables and other clean energy sectors for future growth
.
The world's major oil and gas EPCs are adopting different strategies to position
themselves for the energy transition.
For example, Aker and Technip FMC have restructured their business to create a low-carbon projects division; Petrofac aims to achieve net-zero emissions
in Scope 1 and Scope 2 by 2030.
Although approaches vary, the most common target areas for major oil and gas EPC companies are offshore wind and carbon capture and storage (CCS).

Demand for lubricants in the GCC region will grow modestly

According to Klein & Company's latest Middle East Lubricants Market Opportunity Analysis, lubricant demand in the Gulf Cooperation Council (GCC) region will grow modestly over the next few years, as GCC member countries, including Bahrain, Oman, Saudi Arabia, Kuwait, Qatar and the United Arab Emirates, are diversifying their economies to reduce their dependence on
the oil and gas industry.
Klein predicts that demand for finished lubricants in the GCC region will grow at an average annual rate of 1.
3% from 2019 to 2024, although its average annual growth rate will slow to 1%
as infrastructure investment decreases.
OEMs in the industrial sector will continue to drive the demand for
high-performance lubricants.
The use of synthetic lubricants is likely to grow along with imports of high-performance equipment, which will drive the consumption of commercial lubricants from
2019 to 2024.

The global bioplastics market will grow rapidly by 2027

According to global market intelligence data, the global bioplastics market will grow rapidly at an average annual rate of 25.
8% from 2020 to 2027, and the global bioplastics market is estimated to be worth $215 billion
by 2027.
Coherent Market Insights said in a statement that growing consumer and government concerns about environmental issues are the main drivers of the rapid growth of
the global bioplastics market.
Bioplastics are made from biomass raw materials, such as cellulose
in wood.
Unlike conventional plastics, bioplastics can degrade
in a shorter period of time.
Increasing concern about environmental pollution has encouraged some major manufacturers to adopt bio-based plastics, and the growing demand for packaging for bio-based materials will boost the growth of
the bioplastics market.
According to the European Bioplastics Association, packaging remains the largest application area for bioplastics, accounting for about 53% of the total bioplastics market in
2019.