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Surplus capacity to set margins through 2020

10:17 AM MDT | April 6, 2015 | —Clay Boswell in Galveston

Demand for key basic chemicals has surged since the financial crisis of 2008–09, but imbalances in supply and demand are emerging that will shape margins through the end of the decade, according to Mark Eramo, v.p./chemical insights at IHS Chemical. Ethylene and vinyls are set to benefit, he told the recent IHS 2015 World Petrochemical Conference in Galveston, TX, but methanol could be challenged. “The potential buildup of a significant amount of surplus capacity stands as a constant risk in basic chemical markets,” he says. IHS Chemical expects...

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