GLG News by Specialty Chemical Experts

According to a NY Times, 11/6/08 article, consumer spending has decreased by 3.1% during the third quarter.   Additional evidence includes a similar article written by Newsweek on 11/22/08 discussed China, Factory to the World, impact on global demand.

European nations have used taxes and tolls to 'optimize' truck freight tonnage and reduce pollution and greenhouse gas emissions.  With an aggressive environmental agenda the new US government may seek to harmonize domestic standards with the Europeans. 

The problem with Detroit is arrogance and know it all..for years now the leadership at Detroit three auto makers insisted on not briniging new and fresh blood from the outside..you do not the autombile industry , you are no good. Yet there are  tremendous talents out there that can can help...

Capacity shutdowns by Dow and BASF will pressure smaller players to rationalize their own operations.  If liquidity is insufficient to weather an extended downturn consolidation of global capacity is likely; voluntary or not. 

Carbon Offsets / Carbon Credits are unknown costs for many North American firms because of their complexity.  Many progressive sustainability leaders have cracked the code and are ahead of the pack.

Dow's CEO says their prices have fallen 40% since September on major products. They are seeing unprecendented "global contagion" as demand falls in all major regions. Plant closures by Dow and others are inevitable, as the industry adapts to a new, lower-growth environment

Falling oil prices have not led to price relief from major chemical and plastics producers.  Consumers will continue to see higher prices on everyday goods from diapers to toothpaste and toilet paper.

What is going to stimulate demand?  Product innovation will create some excitement but is this enough?

Heavy Duty diesel truck engines must meet stringent EPA NOx emissions standards in 2010.  Solutions include SCR catalysts and/or high EGR rates.  The tradeoffs in performance and fuel economy may define market share among the major engine makers.

Cheaper crude oil means less attractive returns for alternative fuels producers.  Coupled with collapsing capital and credit markets further expansion of renewable fuels capacity is in doubt.