Europe chemical industry outlook for 2008

09 January 2008 11:24  [Source: ICIS news]

LONDON (ICIS news)--The following stories were published on ICIS news between Monday 24 December 2007 and Friday 4 January 2008.

 

Strong year seen for Europe naphtha

It looks like a strong year ahead for the European naphtha market but there will be uncertainties, according to traders.

 

Crude still eyes $100/bbl

The crude markets are likely to remain volatile in 2008 with little chance of serious price drops and every chance of hitting the magic $100/bbl mark.

 

Fertilizer rises set to continue

“There has never been a year like it.” The comment from one seasoned fertilizer trader sums up 2007 in a nutshell. Prices have repeatedly set new record highs through the year and have reached levels many thought were impossible.

 

Costs key in Europe olefins

Record high first-quarter European ethylene (C2) and propylene (C3) settlements have not offset cracker operators’ fears for 2008 margins because of unprecedented upstream energy pressure.

 

Crude to determine Europe aromatics

Aromatics producers, buyers and traders agreed that the energy complex would play a volatile yet decisive role in 2008, putting the US literally and figuratively in the driving seat.

 

More Europe styrenics uncertainty

European players in the styrenics market remained pessimistic on prices and downstream demand for early next year following an unpredictable 2007.

 

Russia set to expand petchems

Russia has emerged as one of the world's leading oil and gas producers but still imports more than half its plastics and petrochemical products, and plans to develop the sectors have been slow to materialise.

 

Europe polyolefins set fair for H1

Polyolefins producers ended 2007 in a strong position after a profitable year, and they see a clear run for the first half of 2008 at least due to delays in planned Middle East capacity, robust demand in Europe and Asia and cutbacks in unprofitable European production.

 

M&A activity set to slow

The total value of mergers and acquisitions (M&A) in global chemicals has been consistently high throughout 2007, driven by several multi-billion dollar deals, but investors are heading into a period of economic uncertainty where large acquisitions can be a risky business.

 

High Reach costs will add to burden

Anyone producing, purchasing, selling or trading chemicals in Europe knows that the EU’s new chemicals legislation Reach is going to hurt. The trouble is, they don’t know how much.

 

Feedstock driving Europe solvents

Opinions were mixed regarding the short-term prospects for ethyl acetate. Some felt it would see modest growth, while others said fundamentals in the second half of 2008 would be less favourable than in 2007.

 

Europe MEG stabilising after peaks

A more stable year on monoethylene glycol (MEG) pricing and supply is expected by the European market in 2008 after a turbulent, record-breaking 2007, which could give some of its derivative markets a chance to recover margins.

 

Planning key in Europe caustic soda

Concern over the crucial construction markets in the US and Europe, combined with crude values hovering near $100/bbl (€68/bbl), will continue to haunt Europe's tight caustic soda market in 2008, said producers and buyers.

 

Europe oxos seek plasticiser relief

The short-term prospects for European oxo-alcohols buyers look bleak on continued restricted production but market sources said they saw some light on the horizon in 2008.

 

Europe biofuels strive for resilience

After the rollercoaster ride of 2007, the forthcoming year will see the European biofuels sector search for stability. But not everyone is optimistic.

 

Tough conditions for chem shipping

Market conditions could take a significant turn for the worse in 2008 as chemical tanker operators struggle with new ships, fewer trained staff, higher costs and an economic slowdown.

 

Europe base oils balancing out

Some European base oils buyers are concerned that prices will continue to rise in 2008 while others are more confident that a new period of stability has emerged in the market.

 

EU chems growth set to weaken

Europe’s chemicals producers look set for a tricky if not difficult 2008, even though they might expect to ease into the new year.

 

Chems plans to combat energy costs

Increased European energy costs have been partially blamed for rising petrochemical prices and EU legislation and aging infrastructure look likely to cause further hikes in 2008.

 

Europe PVC fending off energy, C2

Energy and ethylene costs will remain the big issues for polyvinyl chloride (PVC) this year following what has been described as one of the best years for margins in 2007, market sources said.

 

By: Staff Reporter
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly