Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 29 May.

Downward price pressure on ammonia remains for June loadings
A fresh fall in the monthly Tampa contract price set a bearish tone in the global ammonia market heading into June.

Europe propylene June contract up around 11% to €630/tonne on feedstock gains
The European propylene June contract reference price has been set at €630/tonne, up by €60/tonne from May.

Europe chems stocks rise on lockdown easings despite uphill struggle ahead
European chemicals stocks and bourses rose healthily on Thursday on the back of hopes the lockdown easings will revive economic activity and liquidity provided by central banks will soften the recession blow.

German economy to contract by 6.6% in 2020, chems to recover in nine months
The German economy is anticipated to contract by 6.6% in 2020, leading to growth of 10.2% the following year from that lower level, according to analysis from the ifo Institute on Thursday.

Pandemic could deepen petchems supply/demand imbalance – IEA
The economic impact of the coronavirus pandemic could exacerbate the supply/demand imbalance for some petrochemicals brought on by huge capacity expansions in recent years, the International Energy Agency (IEA) said on Wednesday, as energy investment this year stands to drop to historic lows.

Germany’s VCI pulls 2020 forecast, expects ‘severe recession’
Germany’s chemicals trade group VCI expects a “severe recession” with a significant drop in chemical and pharmaceutical production and sales because of the coronavirus pandemic, it said on Wednesday.

INSIGHT: Europe PET demand outlook unclear as lockdowns ease, market remains in survival mode
The polyethylene terephthalate (PET) industry in Europe had a surprisingly good run on sales during March’s pandemic shopping spree, but there is no getting away from the toll of a depressed economy.

German industry expectations rise in May but situation remains dire
Germany’s export-reliant industrial companies’ sentiment on future expectations markedly improved in May as the country started easing its lockdown, but current business conditions remain bleak, research institute Ifo said on Monday.

Stalled automotive sector puts hopes on China, decrease in air travel
The pandemic has left the automotive industry on cinder blocks, thwarting any expectation of recovery from an already-slower 2019.