PODCAST: Lower gas prices not yet stimulating Europe chemicals, fertilizers

BARCELONA (ICIS)–Falling gas prices have not yet revived Europe’s ailing fertilizer and petrochemical sectors as producers fret over recession and future gas market dynamics.

• Europe gas prices reach pre-Ukraine war levels
• Warm weather cuts demand by 30% year-on-year
• Europe liquefied natural gas (LNG) capacity will rise 20% in 2023
• Storage below 90%, usually around 60% this time of year
• Cold snap February/March could see storage deplete, prices rise
• Risks for winter 2023 if Russia cuts supplies further, China LNG demand increases
• Reliance on Russian gas imports falls from 40% to 10%
• No sign of pick up in Europe petrochemical or fertilizer production
• Producers fear recession, future gas price increases
• Europe threatened by cheap fertilizer imports from Russia, Middle East
• China rebound threatened by COVID-19 deaths, collapsing construction sector

In this Think Tank podcast, Will Beacham interviews ICIS energy and cross-commodity expert, Aura Sabadus, ICIS managing editor for fertilizers, Julia Meehan, ICIS Insight editor, Nigel Davis, and ICIS senior consultant Asia, John Richardson.

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.