This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at La industria química mundial seguirá creciendo en 2006, aunque menos
The industry accused, according to the latest report by Coface, the economic slowdown, the rise in the price of oil and energy
The global chemical industry will continue to grow in 2006, although less
María Escribano01/04/2006
Factors such as the economic slowdown and the increase in prices of raw materials and energy in 2005 worsened the conditions of trade in many economic sectors, affecting the solvency of the weaker companies. As a result, several sectors, including the chemical, pulp and paper or the pharmacist had worsened. This year expected growth in the chemical sector that will be located about 3.6 per cent.
In 2006, the slight decrease in the prices of raw materials and the prosperous world demand in charge of the substitutions of values and industrial investments could have - according to the latest report of Coface - a positive effect. In addition, technical innovations will continue to be driving the performance of various sectors.
Chemical sector
For this year, the growth in the chemicals sector will be driven by industrialized countries to a more or less equal rate (3.6 per cent). However, in order to process and chemical intermediates manufacturers continue to struggle to affect costs high on its customers. This contributes to the erosion of their profit margins. In an attempt to control costs, companies are moving increasingly towards regions rich in raw materials and fluctuating markets.
COFACE estimated growth in the chemical sector of 3.6 %
Pharmacy
Another sector, the pharmacist, get better results. It is a market that for Coface, continues upward, although more slowly than in the past (rise of 7 percent in 2005 and forecast of 6 percent in 2006), on account of the ageing of the population in industrialized countries. The large profit margins are thus cut by the fast development of generic medicines, for the revocation of the patent of the spearhead drugs by price pressure exerted by the public health and the increase in the costs of the prevention of risks of treatment. Despite a less favourable environment, the behavior of companies pay remains satisfactory.
Companies are moving towards regions rich in raw materials and fluctuating markets
Pulp and paper
In the sector of the paper, pulp, chemicals, and energy prices remained high in 2005. The European paper industry experienced a slight decrease in profit margins to the sluggishness of demand and the excess of production capacity. On the other hand, American and Asian paper manufacturers have enjoyed greater demand and have therefore been able to pass increases in the costs on to customers. 2006 might be a year best due to the bearish price of pasta the maintenance of the high level of international demand and its growth in Europe. Printing and writing paper wholesalers will continue however facing great competition between the manufacturers to ensure the distribution.
The pharmaceutical market remains on the upside, but more slowly than in the past
