PODCAST: Europe propylene market drowns, faltering demand signals broader economic woes

BARCELONA (ICIS)–Europe’s propylene market is in disarray, with massive oversupply and faltering demand signalling trouble for the broader economy.

• Extreme oversupply in Europe propylene markets
• Sellers desperate to off load volumes
• Europe spot propylene trading at 15-30% discount to contract price
• Five Europe crackers in planned maintenance, unplanned outages elsewhere
• Weakness in downstream demand on top of unplanned outages
• High inventories in Europe polypropylene (PP)
• China economy is frozen with 30% in lockdown
• Global economy may enter severe downturn
• Three horsemen of the apocalypse – war, pandemic, potential famine

In this Think Tank podcast, Will Beacham interviews ICIS senior editor, olefins Nel Weddle, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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Read Paul Hodges and John Richardson’s ICIS blogs.