PODCAST: Ukraine war hurts Europe PE producers, opens door to Middle East, US exporters

BARCELONA (ICIS)–The war in Ukraine has pushed up polyethylene (PE) production costs in Europe, leading potentially to production cuts and new export opportunities for Middle East and US producers.

• Europe PE producers suffer soaring feedstock, energy costs
• Prospect of production cuts despite record high PE prices
• US and Middle East may gain new export opportunities to Europe
• Soaring PE prices in Europe could dent demand
• Gazprom honours long-term gas contracts
• Russian gas may be interrupted, but not completely cut
• Any gas rationing likely to be for short periods
• Europe gas prices decline as fears of gas interruptions abate
• Russia goes from net PE importer to 1m tonne/year exporter
• Russia supplied half of Europe’s naphtha in 2021
• ICIS expects Russian PE projects to be delayed or cancelled
• China PE rates are lower, recession a possibility

In this Think Tank podcast, Will Beacham interviews ICIS head of gas analytics, Tom Marzec-Manser, ICIS senior consultant for Asia John Richardson and Lorenzo Meazza, ICIS analyst for European polymer markets.

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.

ICIS is organising regular updates to help the industry understand current market trends. Register here.

Read the latest issue of ICIS Chemical Business.

Read Paul Hodges and John Richardson’s ICIS blogs.