PODCAST: Europe PE, PP panic confirms persistent demand collapse

BARCELONA (ICIS)–Europe’s polyethylene (PE) and polypropylene (PP) markets are suffering from chronic oversupply and poor demand as new capacities elsewhere target the region.

• Europe PE, PP markets tally with LANXESS CEO warning of collapsed demand
• Europe PE, PP see chronic oversupply, poor demand
• Prices crash as all downstream sectors except automotive suffer
• People choose products with cheaper packaging
• Convertors switch to cheaper polymers such as polyethylene terephthalate (PET) and polyvinyl chloride (PVC)
• Europe PE, PP producers operate at minimal rates of 65-70%
• Consumers spend on travel and services, not goods
• Time to move on from business-as-usual approach

In this Think Tank podcast, Will Beacham interviews ICIS senior editor manager, Vicky Ellis, ICIS senior editor, Ben Lake, 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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