BARCELONA (ICIS)--The global petrochemical industry faces its toughest month so far as the coronavirus deepens disruption of normal demand patterns while supply is also threatened.
- Challenge of managing integrated refinery/cracker operations in this phase of the crisis
- At least one third of European chemical capacity potentially threatened by refinery closures/restrictions
- Demand for petchems could be down by around one third globally
- Normal seasonal trends are disrupted, making forecasting impossible
- Europe mono ethylene glycol (MEG) prices at record low levels
- Influx of imports threatens to overwhelm storage
- Impact of renewed trade war on China
- Expect destocking in China as recovery in production is ahead of recovery in demand
- Central banks have mismanaged financial crises since 2000
- Overcapacity in energy and chemicals can be traced back to central bank interventions
Europe chemical capacity threatened by refinery closures and restrictionsSource: ICIS Supply & Demand database
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Read more analysis of chemical market trends in this week's edition of ICIS Chemical Business.
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Podcast interview by Will Beacham