PODCAST: Europe petrochemicals face another ‘winter of discontent’ despite rising gas supply
BARCELONA (ICIS)–Gas storage is bigger and more full, but region’s chemical sector faces another difficult winter driven by poor demand and overcapacity, especially in China.
- Europe ICIS TTF benchmark gas prices have fallen from more than €300/MWh to €34/MWh for October
- Europe gas storage is 95%, should be 100% by November
- More storage, import facilities mean region is better prepared than last year
- Germany industrial demand is 20% lower than five-year average
- Cold winter in Asia and Europe would cause problems
- Long-term global liquefied natural gas (LNG) supplies will rise as US, Qatar almost double production
- Fertilizer demand is up as prices have fallen
- Europe fertilizer sector undermined by cheap imports
- Fertilizer production in Europe has risen from 30% to 70% of capacity
- China demographics, property woes will stifle economy
- China chemical exports will continue to rise
In this Think Tank podcast, Will Beacham interviews ICIS cross commodity expert Aura Sabadus, ICIS deputy managing editor for fertilizers Deepika Thapliyal, 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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