The year 2022 proved to be a challenging time for the global economy, particularly for the chemical market, which was confronted with significant turbulence. A noteworthy occurrence that had profound repercussions for the world economy and hindered its recovery from the COVID-19 pandemic was the onset of the Russia-Ukraine war in February 2022. This led to widespread violence and displacement of civilians, as well as significant damage to infrastructure and businesses in the affected areas.
The Russia-Ukraine war has brought about fears of a global recession due to its potential impact on the world economy. The ongoing conflict has already caused significant damage to the economies of both Russia and Ukraine, but it is the broader economic consequences that are of particular concern.
The conflict has led to a rise in global crude oil prices. Russia is one of the major producers of crude oil, and any disruption to its supply can lead to a rise in prices. In addition, Ukraine is a key transit country for Russian gas exports to Europe, and any interruption in the flow of gas could lead to a shortage in Europe, further pushing up prices.
Further, the sanctions imposed by the US and the EU on Russia have had a significant impact on global trade. Many Russian companies are now unable to access the international financial system, making it difficult for them to do business with foreign companies. This has had a knock-on effect on businesses around the world that have links to Russia, including many in the chemical industry.
Additionally, the war has led to a general sense of uncertainty in the global economy. Businesses do not like uncertainty, and the prospect of a prolonged conflict in a major global player such as Russia can cause investors to pull back and wait for clearer economic signals before investing further. This can lead to a slowdown in the global economy, and in some cases, a recession.
Thus, this report is an attempt to indicate the impact of these market uncertainties on the global chemical market, by showing their financial performance of 2022 compared to 2021.