...Volume recovery. Following the severe downcycle amplified by massive destocking between the second half of 2022 and the end of 2023, global chemical production volumes started to recover in first-half 2024, including for European chemical producers. However, this increase was very modest compared with other regions. At the same time, lower prices caused chemicals sales to decline slightly. Demand still sluggish. While the significant destocking by chemicals customers ended in first-half 2024, demand trends remain muted, with no solid signs for sustained recovery. Our base case factors in a gradual recovery and a slightly stronger second half of 2024. Industry sentiment remains cautious. Issuers have noted the pickup in demand, an upturn in stock levels, and somewhat fuller order books, albeit these are still at low levels. At the same time, recovery is burdened by the prolonged economic uncertainty that has kept raw materials and energy prices high....
