The international situation of the chemical industry

The global chemical industry will continue to face significant challenges in 2025, but is expected to maintain positive growth. Despite tepid economic growth, sluggish manufacturing end markets, and potential escalation of geopolitical tensions, global chemical production is expected to continue to grow. Global chemical production is expected to increase by 3.1% in 2025, mainly driven by the Asia Pacific region, while Europe is expected to recover from a significant decline.
The Asia Pacific region will continue to be the main driving force for chemical production in 2025. Despite ongoing geopolitical uncertainty and unstable trade dynamics in the Asia Pacific region, chemical production in the area is expected to improve. The geopolitical uncertainty in the Middle East and the trade friction between China and the United States are expected to continue affecting the chemical market, but the situation of the Asia Pacific chemical industry will improve in 2025 compared to 2024, although production capacity and structural issues still need to be addressed.
The European chemical market will face challenges of weak demand and oversupply. The European Purchasing Managers' Index (PMI) has contracted for 27 consecutive months and there is currently no sign of recovery. Enterprises can adjust the number of factories reasonably through divestment or cooperation, focus on core business, and accelerate innovation towards professional, green, bio based, or low-carbon chemicals.
North American chemical companies are showing signs of obstruction. Due to seasonal factors, many American chemical companies have suspended operations or planned equipment maintenance in advance. In the next two years, investment in the chemical industry is expected to restart, but high interest rates and high capital costs may affect development.
The Chinese chemical industry is transitioning from "scale expansion" to "technology driven".   At the same time, domestic chemical enterprises are actively expanding their domestic market, increasing their efforts in technological innovation and product research and development to meet the market's demand for high-end chemical products.