Q3 2023 Chemicals Sector Quarterly Update – The Prolonged (Delayed) Recovery
While it may not seem like it, there were a handful of green shoots in the third quarter that cause us to be cautiously optimistic about 2024 (despite executive sentiment reflecting more of a “grey sky” scenario, at least in the near-term). Several economic indicators point to a cooling economy and disinflationary environment – the former, generally not something to celebrate, but after 11 consecutive rate hikes by the Fed any sign of taming inflation is seen as a positive for the M&A market. Additionally, companies and customers across the chemicals value chain successfully reduced inventories while firming up their supply chains. We expect volume pressure and margins to improve as companies continue destocking efforts throughout the fourth quarter and into 2024.
Q3 2023 Chemicals Sector Quarterly Update – The Prolonged (Delayed) Recovery – PDF Download