Hitting Bottom

Chemical markets may have found a bottom in the first quarter as producers report that volumes picked up in March compared to January and February. Demand remains below historical patterns, however, and activity may stay near this new-found floor for a while. Chemical makers are clearly bracing for an “L”-shaped recovery, where activity remains at subdued levels, as opposed to a “V” shape, which is marked by a quick rebound. Downstream inventory destocking appears to be dwindling in most markets, which could provide some welcome support...

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