Atradius: Industry trends chemicals May 2026

The closure of the Strait of Hormuz and high energy prices have a major impact on the chemicals industry. We expect global chemicals production to increase by 0.6% in 2026, 1.6 percentage points lower compared with pre war expectations. The US chemicals sector is somewhat shielded from shocks to global energy prices. Production growth is expected  to accelerate in 2027 after a modes 2026 performance. China´s chemical industry has a significant overcapacity issue, impacting margins for many producers. Germany´s chemical sector is forecast to suffer a 4.7% output contraction this year. Credit risk has increased for smaller basic chemical producers without pricing power.