CHEMICALS

Withstanding the worldwide economic slump

M

MEDIUM RISK for entreprises

  • Fragmentation

  • Internationalization

  • Capital Intensity

  • Profitability

  • Innovative sector with upmarket positioning in downstream segments (cosmetics)
  • Very diversified end markets softening the impact of external shocks on firms’ revenues
  • Sound profit margins enabling chemical firms to invest more in R&D
  • Dependence on its two main outlets (automotive, construction) which account for around 15% of global chemical sales
  • High capital intensity combined with high degree of WCR
  • Poor public image in terms of environmental issues
  • Agrochemical subsector coping with the weak outlook for global farming
  • Investments to be made in the upstream to reduce greenhouse gas emissions

Key players

Country Role Sector risk
China

#1 market by revenue

B

Medium risk

United States

#2 market by revenue

B

Medium risk

Germany

#3 market by revenue

B

Medium risk

Japan

#4 market by revenue

B

Medium risk

South Korea

#5 market by revenue

B

Medium risk

India

#6 market by revenue

B

Medium risk

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Risk Analyst

Marc LIVINEC

marc.livinec@eulerhermes.com

We're always producing new content to help businesses understand economic trends and navigate trade uncertainty.
Sign up for our newsletters to make sure you don't miss anything.
Subscribe Today