Chemicals: European chemicals companies catching up with the US thanks to low oil prices

  • China's economic rebalancing is shifting internal demand from basic to specialized chemicals
  • Positive effects of low oil prices mostly benefit upstream segments
  • Firms' capacity to cope with increasing interest rate particularly burden emerging markets
  • Higher R&D spending required for chemical players to reach an upmarket positioning
  • M&A activity to continue in 2016 putting at risk small players