Chemicals

Chemicals are in high demand yet unprofitable.

Andy can we get a price point above the break even mark?

Almost all the supplies needed for chemicals are raw materials, that's probably the reason why it can't turn a profit with CEO anymore.

It's not just CEOs.
My Chemicals Corps have
revenue 4,268.10M SC$
expenses 4,054.73M SC$

For a profit of about $200 million, at max price. Most Corp types I make between $700mil-$1bil, at max price. I think John Galt is correct, that the increases to Mining Product prices, haven't been matched by enough increase in Chemical prices.

Chemical, after a very long period of shortages, were recently in oversupply and the price of the product declined.

now, shortages are back and the price is up again.

I assume that the corporations are now profitable.

It is not profitable at the maximum price for CEOs. Trust me.

Chemicals are currently horrible corps. All chemical corps I had ran negatives, consistently. I've been eliminating them from all accounts.

Fully upgraded Chemicals corp in Doublestar Republic...

Corp name: Ashdod Chemicals

Just looked into KB.
Chec=micals are in short supply.
the price is at max.

on WG, it was at max several game months ago.
declining now.

chemical will rebalance and probably show shortages as the entire market is returning to more shortages.

There are no guarantees as you know.

this is an essential part of Simcountry.
there is a market and it goes its own way.

Natural resources cause some changes in the production model.
we don't really know.

We think that another trigger was a decline in the number of corporations and some decline of population in mainly C3 countries.
Many C3 countries had far too many corporations and we require higher employment levels before new corporations start.

This should not result in any imbalance.

smaller number of corporations, producing more per corporation.
smaller population numbers, producing less and consuming less.

it did not take place proportionally on all fronts.

Andy. Chemicals on LU for CEOs is not profitable at peak price. The corporations lose around 4 billion per year.
This is happening because the majority of the raw materials required for chemicals are in the mining sector, which
has seen major price increases since the natural resources update. What you are saying about chemicals is not
based on reality. The situation for chemicals will never improve unless either the price of mining goods comes down
(which it never will due to the lack of production), or the price of chemicals goes up.

Andy, John Galt,

John has a point. To be clear, people aren't saying that Chemicals are performing poorly due to having low prices, because of surpluses.
Rather that the base price/production/consumption/hiring levels, make Chemicals a bad product to produce, even when Chemicals are selling for max price.

Presidents can make very small profits on Chemicals selling at max price.
However, CEO's will always lose money on Chemicals.

There are two main causes for this...

1). Chemials use a lot of Mining Products as inputs, which have had their 'base/max' price increased. Meanwhile 'base/max' price of Chemicals has not kept up.

Proposed Solution.
Reduce the quantity of Mining Products, required by Chemical Corporations per month.
This would bring base profitability of Chemicals in line with other products, while still allowing Mining Products to have a high base/max price.

2). CEO's pay taxes based primarily on revenue.
That means that a high cost, high revenue product will lose money under CEO management.
That is exactly why real world countries don't use revenue based tax models for business.

Proposed Solution.
Transition 'Country Resources Used' taxes, to be based on profit, rather than revenue.
That way, taxes would be proportional to profits, so high revenue, high cost, product types, would be equally viable for CEOs.
To be clear, this isn't a proposal to reduce total CEO taxes, just to collect the taxes on based on profit, instead of revenue.

Signed President of DanNation on LU

I very much agree with Daniel, this revenue cost based price is very bad for my CEO and I would be wiling to pay taxes based on profit but not revenue which hurts me a lot.

Chemicals:

I’ve dumped all my chem corps because of this. It is not possible to turn a profit on them with ceo’s