PUBLICATION

Chemical Week

AUTHORS

Lorena Stancu, Germaine Aboud, Maria Filippova

Singapore Chemicals 2022 IHS CW Release

July 13, 2022

Even if Singapore is far away from the crisis in Europe, its chemical industry is directly caught in the whirlwind of global events, tied to the price of feedstocks as a direct relative of the oil and gas industry, in the open field of trade tensions, and at the whims of different consumer trends. Almost all companies GBR spoke to this year posted strong growth in the first quarter of 2022, and record-level growth in 2021, both despite – and sometimes because of – the pandemic. However, the outlook is murky, and it hinges on the ability of chemical companies to pass on costs to the next segment in the value chain, and eventually all the way down to the consumer. Whereas bulk chemicals directly feel the sting of higher feedstock and energy prices, performance chemicals are in a better position not only to pass on costs, but cash in solid margins. For specialist chemical players, bigger headaches have been brought on by the shortages in raw material supply combined with the continuous bottlenecks in logistics, which have derailed orders and led to long waiting lists for some products. Beyond current market fundamentals, the Singaporean industry is exposed to the exceptionally positive demographic fundamentals of Asia Pacific. Nutrition is a key investment priority for the industry, Singapore finding itself at the core of the effort to tackle the challenges of both food security and food sustainability.

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