The chemicals industry was hit hard by the pandemic, but vaccines and other developments are expected to stabilize conditions in 2021. The worldwide impact of COVID-19 forced industry leaders to scramble, and while many experts forecast a 2021 recovery, the chemicals industry will likely not make up all its lost ground until 2022. Production is expected to increase only 3.9% in 2021, with most of the increase expected in the second half of the year. Enterprises are leveraging technology to blunt the impact of the pandemic and drive new value. Average interest rates are now below 1% globally and negative in one-fifth of the world, leading to increased input costs. Prices in the futures market for commonly used raw materials and commodities confirm this trend. The chemicals industry is expected to experience muted demand and rising prices.
