Chemicals profit to double globally by 2016, industry expert says

HOUSTON — Bloomberg reports chemicals profit should more than double globally by 2016 as rising Asian demand for plastics and other products outpaces supply additions in China, the Middle East and North America, IHS Inc. Vice President Mark Eramo said in a presentation at the IHS World Petrochemical Conference in Houston.

Earnings will remain above $150 a ton for three years beginning in 2015, peaking near $200 in 2016, compared with about $75 a ton this year, Eramo said.

“By 2013, the global industry will begin the transition to the next up-cycle, returning to very high profit levels, potentially outperforming previous periods of strong earnings,” according to the presentation.