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Demand and Price Weakness Weigh on Sentiment

7:38 AM MDT | June 15, 2012 | —Robert Westervelt and Lindsey Bewley

Growing economic uncertainty, falling energy and chemical prices, and indications of weakening demand have producers recalibrating second-half expectations as sharp drops in energy and commodity prices cause destocking across industry’s supply chain. Weakness is not universal, however, and some key sectors and regions remain strong, producers say. U.S. demand is solid and China has improved from weak early-2012 levels. Key markets such as automotive and parts of construction continue to grow, and demand in less cyclical sectors, including agriculture, also...

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