Stage Set for Solid 2007

U.S. chemical makers closed out a strong 2006 by successfully navigating a difficult fourth-quarter operating environment. Weak U.S. volumes were offset by rebounds in Europe and continued strength in Asia (p. 8). Also, from a profit perspective, the benefit of lower energy and feedstock costs more than made up for some declines in product prices. Last week’s results also provide insight into producer expectations for 2007, and early indications are that the economic and demand environment this year should be equally as strong as last year. Underlying...

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