Surging inflationary pressures and dwindling economic growth expectations are pushing parts of the global economy towards the kind of stagflationary footing seen during the 1970s oil crisis, while supply shocks and feedstock surges are starting to remap chemicals flows once again.
· European chemical markets have flipped from oversupply to tightness
· Supply disruptions in Asia and the need to source material may reduce flows to Europe
· China is better-equipped to deal with the Strait of Hormuz closure than many of its neighbours
· The crisis could prompt Asia Pacific players to re-evaluate their heavy reliance on Middle Eastern feedstocks
· The US chemical industry is comparatively insulated and profiting from the turmoil: with abundant domestic oil, gas and cheap ethane
· Economic sentiment is weakening as conflict-driven costs ripple through the global economy
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