Summary of mid-year Europe OUTLOOK stories

Author: ICIS Editorial

2021/08/09

LONDON (ICIS)--Here are the mid-year Europe OUTLOOK stories which ran on ICIS news throughout July.

Click on a headline to read the full story.

Strong demand, disrupted supply to keep European AA tight
Tight supply in the European acrylic acid is expected to persist in the second half of this year.

A challenging H2 expected for European acrylate esters
The second half of 2021 is expected to be just as challenging in the acrylate ester markets as the first half.

Europe ABS supply shortage until at least Q4, ongoing pressures across H2
The supply shortage in the European acrylonitrile-butadiene-styrene (ABS) market is expected to continue across H2 2021, as ongoing pressures are likely to prevent any relief to the difficult market situation, including production issues in the supply chain, low imports, and strong demand.

Europe ACN tight supply to persist as demand stays strong
European acrylonitrile (ACN) demand is expected to remain healthy to year-end while the ongoing snug local supply situation, coupled with a reliance on imports, is set to persist.

Europe's auto sector gripped by supply chain woes
Growth in the automotive sector looks set to be stunted over the second half of 2021, as clogged supply chains prevent the industry from meeting demand.
Europe benzene market faces shifting trade winds
The European benzene market has become more regionally focused this year as spiking logistics costs and shipping delays have changed arbitrage economics, factors that threaten further supply chain disruption in the second half of 2021.

Europe biodiesel feedstock concerns linger despite demand revival
The European biodiesel market is set for signs of shortages to persist for the remainder of the year while demand recovers in a steady manner.

Europe BPA supply easing possible in H2 of year, but bumpy ride likely
Europe bisphenol-A (BPA) supply could ease in Q3 with derivative turnarounds, related product shortages and higher import arrivals. Despite this trend, robust demand outlook and persistent global logistics crisis could cap the supply recovery in the second half of the year.

Europe butadiene bullish on US supply woes
Demand for European butadiene (BD) is expected to remain strong through the remainder of 2021 and certainly through the usually slower summer period.

Europe Caustic soda tight; new outages weigh on H2 2021
The European caustic soda market tightened in the first half of 2021, and prices are likely to remain firm in the second half.

Europe capro to stay tight in the second half of this year
European caprolactam (capro) market could stay tight in the second half (H2) of 2021, at least during Q3, with the tightness possibly easing in Q4, depending on whether ongoing technical issues and problems with feedstock supply are resolved.

Europe construction strong on demand, supply constraints
Construction in Europe is set to rebound in the rest of 2021 from the decline in 2020, bolstered by financial support from the EU, according to a report by analysts at Oxford Economics published on Tuesday.

Europe CX market optimistic on healthy dynamics
The European cyclohexane (CX) market is expected to be sufficiently supplied in H2 2021, with consumption also positive.

European DEG demand to remain solid, supply could ease in August
European diethylene glycol (DEG) short-term demand is expected to remain steady as spot prices have been climbing higher since May 2021.

Europe ECH supply strain could last until end Q4 on bullish demand, logistics woes
Europe epichlorohydrin (ECH) supply tension is likely to persist through Q3 and possibly for the rest of the year despite the resolution of some output issues, as ongoing strong demand and import delays could impact stock recovery.

Europe epoxy supply could ease in H2, disruption still possible
The prolonged supply crunch in the Europe epoxy resins market is likely to gradually ease in the second half of this year, if Asian imports continue to rise and local plant reliability improves, although certain factors could disrupt this.

Europe ethanol to tighten on surging demand as economies reopen
The European ethanol market is bracing itself for potential signs of shortages, to be evident by Q4, on the back of an improved demand outlook.

European ethanolamines demand boosted by pandemic
European ethanolamines demand will no doubt continue to benefit from consumer trends coming out of the COVID-19 pandemic in H2 2021 - as long as hard lockdowns are avoided.

Europe EO demand to remain healthy in Q3, supply eases after turnarounds
European ethylene oxide (EO) supply is expected to remain relaxed following a spate of turnarounds, with solid demand set to continue.

Europe EPS supply shortage until Q4, production issues amid increasing demand
The supply shortage in the European expandable polystyrene (EPS) market is expected to continue until Q4, as ongoing production issues, logistics issues and increasing demand will likely pressure supply further.

Europe fatty acids shortages to extend into H2 2021 and beyond
European fatty acids availability is expected to remain extremely limited through the third and fourth quarters, with shortages expected to last into 2022.

Europe glycerine availability set to slowly improve through Q3
European glycerine supply is likely to increase through the third quarter, though planned maintenance turnarounds may draw out tightness until later into the quarter.

Europe glycol ethers supply constraints set to ease
After a turbulent H1 (first half) with extreme supply shortages, constraints in the European ethylene-based glycol ethers market is expected to ease over the remainder of 2021.

Europe Q3 IPA demand improvement uncertain
The European isopropanol (IPA) market saw muted demand in Q2, and while some improvement is expected in H2, views remain mixed due to lingering memories of pre-pandemic moroseness.

Europe isocyanates, polyols battle back after COVID-19
In the long, light-filled evenings of summer, it’s hard to think ahead to when it gets dark and cold outside early. That’s when people “make home cosy” – and may buy comfy mattresses and snuggly furniture.

Europe LPG market to remain firm into autumn on steady demand, cautious refinery throughputs
The LPG (liquefied petroleum gas) market in Europe has seen a robust recovery in consumption and prices since Q2 of last year. Participants can expect the market recovery to continue into the latter half of 2021 as broadly firm fundamentals persist.

Europe MA fundamentals to remain firm until Q2 2022
Maleic anhydride (MA) demand in Europe is expected to be steady until the end of the year at the very least, with some longer-term views now projecting a strong Q1 2022.

European melamine demand to outstrip supply in Q3 as production constraints continue
The European melamine market is experiencing record high prices, extreme supply limitations due to unplanned issues and higher than expected demand.

Europe methanol shortages to ease in H2, new capacity pending
Tightness in the European methanol market is expected to ease in the second half (H2) following domestic plant restarts and new global capacity.

European MEG short-term supply, demand expectations mixed
The European ethylene glycol (EG) market is braced for a possible delay in imports from Asia which could alter short-term expectations about length developing in the third quarter.

Europe MEK demand healthy and firm from second half
European MEK demand has spiked in April this year and has since been receiving mixed feedback.

Europe MIBK fundamentals to soften on seasonality but pandemic to tighten supply in Q4
European methyl isobutyl ketone (MIBK) prices decreased by over 12% in July after demand started falling in June, and increased supply from overseas absorbed some of the remaining buying momentum.

Shutdowns to shape European MMA
The European methyl methacrylate (MMA) market will face constrained supply for the second half of 2021.

Europe MTBE set for stable H2 demand recovery
The European methyl tertiary butyl ether (MTBE) market is set for stable demand recovery for the rest of the year as gasoline and octanes consumption rebounds across key markets.

Europe MX supply to be adequate to demand in H2
Supply of mixed xylene (MX) in Europe will be adequate to meet demand, which has positive signals in H2 2021.

Bullish fundamentals define naphtha despite headwinds
Current fundamentals in the European naphtha and gasoline markets are projected to continue into the second half (H2) of this year as firm demand will continue to confront tight supply.

Europe olefins optimistic on demand, imports to make all the difference
Back in December, European ethylene and propylene players were optimistic for 2021, having just experienced a fourth quarter like no other and with the coronavirus vaccine rollout underway.

Europe oxo-alcohols market continues on path of gradual improvement
The European oxo-alcohols market looks to remain on a path of gradual improvement as production levels in Q3 may outpace demand for this first time in 2021.

European paraffin wax market to likely remain tight for rest of 2021 and into 2022
Market norms that have dominated the European paraffin wax market for over a decade have been uprooted this year, with disruption to availability expected to persist well into the autumn months and 2022.

European phenol market strong in 2H 2021, acetone will struggle to keep up
The paths of the European phenol and acetone markets are likely to continue to diverge in the third quarter.

Europe steady PA consumption from H1 highs, tightness to linger in Q3
Phthalic anhydride (PA) players see no stumbling blocks for demand in H2 while a number of production issues, and a heavy season of turnarounds in Q3 are likely to keep supply tight during that period.

Europe POM demand to remain beefy against tight supply
Supply of polyacetal (POM) in Europe is expected to remain tight while demand stays firm in the second half of 2021

Europe PBT supply tightness to remain into H2
The supply outlook for polybutylene terephthalate (PBT) in Europe is expected to remain tight, mainly due to issues with raw materials.

Europe PC tightness to ease despite strong demand
European polycarbonate (PC) supply tightness is expected to ease heading into Q4, but strong demand is likely to persist.

Europe plasticizers to continue easing away from peak tightness
The European plasticizers market is set to ease away from the extreme tightness seen in H1 with dioctyl terephthalate (DOTP) to see the sharpest improvement.

Europe PE, PP prices remain high despite long-awaited crash
European polyethylene (PE) and polypropylene (PP) prices are still holding well and there are not many signs of market player expectations that a crash is on the way.

African PE/PP turbulent in post pandemic world
The African polymer market is in a state of transition as the region adjust to post pandemic global trade conditions.

Turkey PE/PP recovery crimped by poor economy
Turkish polymer players have experienced an unprecedented first half of 2021. Prices first rose to historic highs, leaving many converters to consider shutting their plants.

Europe PET torn between logistics mayhem and lockdowns easing
Gone are the days of predictable trends in the European polyethylene terephthalate (PET) market as it rides the choppy waters of momentous global events.

Feedstock key for European PMMA in second half
The European polymethyl methacrylate (PMMA) market in the second half of this year will be driven by the performance of its key raw material.

Europe PS demand to stay strong for construction and white goods in H2 2021, packaging to soften
Expectations are mixed for supply and demand trends for the second half of the year in the European polystyrene (PS) market.

Europe PVC tightness likely to persist for rest of 2021
The outlook for European polyvinyl chloride (PVC) remains uncertain for the second half of 2021.

Europe propylene glycol ethers supply to improve on feedstocks
European propylene glycol ethers spot prices continue their downtrend for H2 on improved supply conditions.

Europe PO set for slow recovery in second half
The European propylene oxide (PO) market is poised to observe a slight lengthening of supply in the second half, as long as there are no major disruptions.

Europe soda ash demand to recover, energy costs key for 2022
As attention turns to towards 2022 contract levels, a gradual market recovery, rising energy costs and a European reopening will mean contracts face increased upward pressure in the autumn months when new annual prices are traditionally agreed with end user customers.

Europe refinery solvents market to remain firm into autumn on steady demand, uneven supply
Coming off the back of a difficult 2020, the European solvents market can be expected to continue the steady recovery it has enjoyed during the first half of this year.

Europe styrene demand upbeat as supply chain disruptions continue
The Europe market for styrene, a key ingredient in plastic packaging, disposable cups and insulation, is facing upbeat trends in derivative markets in the coming months, after a period of widespread supply chain disruption.

Europe TiO2 short supply likely to normalise towards year end
The Europe titanium dioxide (TiO2) market remains short and robust at least for Q3 and the imbalance may intensify on feedstock disruptions, if prolonged.

Europe toluene supply will be adequate for improving demand in second half
There will be healthy availability of toluene in Europe to meet better consumption in H2.