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After a cautious recovery in Q3’24, the chemicals industry displayed resilience in Q4’24, driven by strong demand across key end markets. Export activity continued to thrive, supported by favorable trade dynamics and government initiatives, while domestic consumption showed signs of stabilization. The quarter saw a moderation in raw material costs and improved supply chain efficiency, enhancing profitability for manufacturers. With inflationary pressures easing and the Federal Reserve maintaining a stable interest rate policy, M&A activity gained traction as both strategic and financial buyers sought to capitalize on growth opportunities. However, despite these positive indicators, global macroeconomic challenges persist. Overcapacity in Asia, especially in China’s chemicals sector, continues to weigh on prices and profitability, while trade barriers and geopolitical tensions in Europe are creating further uncertainty. These structural issues are forcing companies to rethink their global supply chains, relocate production, and explore new strategic partnerships to mitigate risks.
