Slower Chemical Growth Expected in Japan

The euphoria over production records or near-records, rising sales, and escalating profits may be coming to an end for Japan's chemical industry. The signals are not strong enough to pinpoint a definite trend, but several negative signs indicate that the red-hot economic recovery that most Japanese chemical companies enjoyed last year and early this year is cooling down—as everyone knew it must. Three factors are making Japan's chemical leaders less optimistic, if not outright pessimistic, about the remainder of this year. One is the potential weakness in the Japanese economy. Another is increased pressure from petrochemical imports, particularly from Saudi Arabia. And the third is possible adverse impact on the industry as Japan opens its markets wider in response to the "Japan bashing" going on in the U.S. Japan's Economic Planning Agency notes that the country's economy still is expanding. But its growth rate is slowing down. And, although the agency doesn't expect the economy ...