The U.S. debt may severely impact the chemical enterprise

Local time on August 2, Obama in the White House signed the bill, raised th U.S. debt limit which has recently been affecting the nerves of the global economy has finally come to and end. However, this does not eliminate the people of the United States of America concern over the economic outlook. The United States of America Organic Synthesis Chemical Manufacturers Association ( SOCMA ) President Larry Sloan said, even if the parties reach an agreement, the United States government credit ratings have also been at risk. Once the sovereign credit rating was lowered, the United States of America financing cost $100000000000 a year will increase, which will include industry, many industry brings severe impact.

Sloan said the United States, the credit rating downgrade would once the dollar devaluation. Although the export market for the United States is a good news, but at the same time, the cost of imports will increase substantially, especially the United States imports of raw materials cost in chemical enterprises. And imports of raw materials cost growth will bring disadvantages would far exceed the export competitiveness , the United States chemical enterprises’ profitability will be subjected to impact.

The industry is worried, Asian petrochemical manufacturers export capacity will be weakened. But analysts said, the strong demand from China and other emerging market will partially offset the negative effect.