Can chemical producers turn Middle East volatility into an advantage?

Paul Kurias, S&P Global Ratings director, lead analyst, corporate ratings, and Danny Krauss, S&P Global Ratings director, join host Vincent Valk for a discussion on the 2026 credit outlook for the chemicals sector. The sector outlook remains mixed as US chemical companies may benefit in the near term from Middle East-related supply disruptions and relative cost advantages, but those same geopolitical pressures could create longer-term risks through inflation, weaker demand and stress in vulnerable end markets such as agriculture and commodities. At the same time, growth tied to AI, data centers and advanced materials provides a meaningful bright spot for specialty chemical producers. However, the industry remains exposed to high interest rates, soft housing and automotive demand.

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