Market Monitor chemicals Singapore 2019

市场监测

  • 新加坡
  • 化学/制药

2019年07月16日

In the medium- to long-term low-cost competitors from Asia and the Middle East could seriously challenge Singapore's export-oriented chemicals industry.

2019 sing chem 1

  • With major investments in infrastructure and support of large-scale projects the government has encouraged large multinational chemical and pharmaceuticals companies to set up branches in the city-state. Therefore, large international groups dominate the market, while Singapore has the world's third largest refining centre.
  • Demand for Singaporean chemical products in Asia is expected to grow further, but a further escalation of the Sino-US trade dispute could disrupt regional and global supply lines. Demand for pharmaceuticals in Singapore remains stable for the time being.
  • Profit margins of chemical businesses have remained stable over the past 12 months, with no change expected in H2 of 2019 and in 2020. However, as petrochemical businesses rely on oil imports they could face some pressure on their margins in the coming six months due to rising crude oil prices.
  • On average, payments in the Singaporean chemicals sector take between 30 days and 60 days. Payment experience has been very good over the last couple of years, and the level of protracted payments is low. The number of non-payment and insolvency cases was low in 2018 and H1 of 2019, and this trend should largely remain unchanged over the coming 12 months.
  • For the time being, our underwriting approach to the basic chemicals as well as the fine and specialty chemicals segments remains generally positive. The same accounts for the pharmaceuticals industry. However, due to the impact of higher oil prices we take a neutral approach to plastics and petrochemicals, especially on trading companies.
  • An immediate downside risk to the sector performance is any repercussions on exports should the trade dispute between the US and China escalate. In the medium- to long-term low-cost competitors from other Asian countries and the Middle East could seriously challenge Singapore's export-oriented chemicals industry.

相关资料

免责声明

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.