Episode 1442: Think Tank: War proves vulnerability of global supply chains
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Episode 1442: Think Tank: War proves vulnerability of global supply chains
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With Asian chemical producers forced to cut operating rates through lack of Middle East feedstocks, it is time for industry leaders to move to a more regional business model.
- Chemical industry has relied for decades on global supply chains
- Asia crackers forced to cut operating rates as Middle East raw materials dry up
- “Just in time” stocks need to be increased to “Just in case”
- CEOs may rethink, consider more local, less vulnerable supply chain options
- World may regroup into three trading zones focussed on Americas, China/Asia, Europe
- High levels of debt will make companies much more cautious
- Trading, pricing of chemicals has become very complicated in chaotic upstream environment
In this ICIS Think Tank podcast, Will Beacham interviews ICIS Insight Editor Tom Brown and Paul Hodges, chairman of New Normal Consulting.