News library

Subscribe to our full range of breaking news and analysis

Viewing 1-10 results of 57986
EDITOR’S VIEW: Gas price caps are not a solution to Europe’s industrial decline
Additional reporting by Ed Cox LONDON (ICIS)–The 2022 energy crisis has left the EU between a rock and a hard place. Record gas prices caused by the Russia-Ukraine war combined with costly climate policies to deal a heavy blow to industrial production, triggering widespread plant closures and an economic downturn. The ensuing need to respond to industrial decline while also stemming social and political turmoil caused by soaring energy costs prompted lawmakers to adopt a controversial wholesale gas price cap, which expired at the end of January. Although prices have fallen since the record levels seen in 2022 they remain stubbornly high by historical standards and have recorded a sustained increase so far in 2025. This has further heightened calls from large consumers to push for urgent measures to curb energy costs, fearing the imminent collapse of industrial production. And the concerns are legitimate. Europe faces geopolitical volatility and growing competition from China and the US. However, reports that the EU may now consider introducing a new gas price cap to stave off industrial decline should come under public scrutiny because of serious risks. A first risk relates to the fact that a price cap would impair the market’s ability to attract more supply if needed. Such a risk would be both short- and long-term as European buyers have secured only a fraction of the LNG volumes already contracted by Asian companies. In January 2025, LNG covered almost 37% of EU and British gas supply, according to ICIS data. However, putting a figure on the percentage of Europe’s contracted LNG relative to future demand is challenging. This is in part due to great uncertainty over Europe’s gas demand alongside the complexities of LNG contracts. But the underlying message that Europe only contracts a portion of its LNG demand – and is heavily dependent on market prices to attract remaining supply – is correct. The need for a robust, market-based TTF reference price in reflecting Europe’s LNG demand relative to other markets will only increase in line with a dependency on US LNG imports, and in the event that Russian pipeline gas does not return. Beyond 2023, the majority of LNG contracts with European companies are for supply from the US on a free-on-board basis, meaning there is no contractual commitment to deliver to Europe. Price signals from buyers in Europe, Asia, South America and the Middle East play a key role in determining the destination of these cargoes. Europe has only received sufficient LNG in recent months to cover gas demand because the TTF has pulled supplies inwards, and away from other global buyers. Large future LNG contracts are also in place with Qatar, but they typically contain diversion rights. It has not been the policy of the EU, nor of European LNG buyers, to commit to large, fixed-destination contracts given the expected long-term drop in Europe’s gas demand. In any case, few sellers would commit to such business with the prospect of a price cap and with other global buyers potentially more attractive. And there are other risks related to financial stability and the credibility of EU markets as they would no longer accurately reflect the bloc’s supply-demand balance. An artificially capped price could lead to higher margin requirements but would also put a strain on the EU’s overall budget, leading to soaring debt. This is because of the gap between regulated and free market prices, which would ultimately have to be borne by EU taxpayers. The EU might consider other options such as reducing regulations and red tape, or ensuring companies have all the flexibility they need to attract more supplies. Although the EU has a fine line to tread – preserving the bloc’s competitiveness while ensuring security of gas supply – introducing a gas price cap would have a deeply harmful impact on markets.
German chemical industry calls for fiscal discipline ahead of election
LONDON (ICIS)–German chemical producers’ trade group VCI wants the country’s new government, to be formed after early elections on 23 February, to maintain the so-called “debt brake” (Schuldenbremse). Debt brake ensures fiscal discipline Economy weak, but fiscal position strong Reform may drive investments to boost economy A dispute over government spending priorities contributed to the collapse of the coalition government under Chancellor Olaf Scholz in November. Under the constitutionally enshrined fiscal rule, structural budget deficits cannot exceed 0.35% of GDP. The rule can be suspended in times of emergency, as it was during the pandemic and the start of the Ukraine war. In the current election campaign, political parties are now debating whether to retain, ditch, or reform the fiscal rule. Critics of the Schuldenbremse say that it hinders public investments, needed to help revive the country’s economy, which has been weak since 2018. GDP shrank in both 2024 and 2023. However, VCI’s position is clear: The Schuldenbremse has proven itself as it managed to halt the trend of growing debt/GDP ratios, the group said in a position paper this week. FISCAL DISCIPLINEThe fiscal rule, anchored in the constitution, ensured that spending does not exceed means and that the current generation does not live at the expense of future ones, VCI said. As a result, Germany has a relatively low level of debt and low debt service obligations – giving it the financial capacity to react in times of crisis, whereas higher-indebted EU countries needed to rely on the solidarity of their neighbors or eurobonds, the group said. VCI acknowledged that the Schuldenbremse is being questioned in light of the current “massive economic downturn and the immense investment backlog,” and it said that the rule was “not perfect”. However, the country’s current problems reflected the “political deficits” of the past, when government neglected necessary investments in infrastructure, security, education, and research and development, it said. REFORM VCI would not rule out a “moderate reform” of the Schuldenbremse, allowing for temporarily higher deficits, as long as the debt-to-GDP ratio remains below 60%, it said. Reforming the debt brake could buy time until investments and reforms start to pay off,  said VCI chief economist Henrik Meincke. The government’s priority, however, must be “to clearly prioritize expenses and focus on investments”, he said. Meincke urged a “fundamental course correction” in industrial policy, with a focus on the government’s core tasks, a sharp reduction in bureaucracy, and “tax revenue invested in security, education and infrastructure, as a priority”. Any reform of the debt brake must not be “a quick fix” as that would not solve the country’s structural problems, the economist said. Analysts at ING said the current political debate about public finances in Germany may create the impression that the country was close to bankruptcy, which was not the case at all. German government debt had stabilized slightly above 60% of GDP and was expected to stay there until 2026, analysts said. “Germany has by far the lowest government debt ratio of the larger eurozone countries,” they added. Thumbnail photo of Friedrich Merz, head of the opposition conservative Christian Democratic Union (CDU), which leads in opinion polls. The CDU favors retaining the Schuldenbremse, but Merz has said he may be open to discussions about reforming it. Photo source: CDU
PODCAST: Exploring Europe PET and R-PET competitiveness ahead of ICIS PET Value Chain Conference
LONDON (ICIS)–Senior editor for Recycling Matt Tudball asks Carolina Perujo Holland, senior analyst for Plastics Recycling, and Travis Klein, senior analyst for PET how the markets in Europe compare with other regions in terms of competitiveness, impact of regulations and feedstock costs. Carolina and Travis also give a brief description about their presentations at the ICIS PET Value Chain Conference, which takes place 6-7 March in Amsterdam. Click here to register and see the full agenda.

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

PODCAST: US hydrogen subsidy halt vs China’s expansion – what’s next for the global market?
SINGAPORE (ICIS)–The Trump administration swiftly withdrew financial support for its hydrogen sector, while China is accelerating hydrogen expansion with strong policy backing. In this podcast, ICIS hydrogen analysts Patricia Tao and Anita Yang discuss how these developments could gradually shift the global hydrogen market’s center of gravity over the next three to five years. US hydrogen competitiveness in global market weakens China integrating hydrogen into its national energy strategy Global hydrogen market is likely to shift in the next three to five years.
SHIPPING: ILA committee approves deal with US ports; full membership to vote on 25 Feb
HOUSTON (ICIS)–The International Longshoremen’s Association (ILA) wage scale committee voted unanimously to approve the tentative agreement between the union and US Gulf and East Coast ports, setting up a vote by the full membership later this month. An ILA strike was averted in January when a tentative deal was reached between the two parties with both sides agreeing to work under the existing pact while awaiting the ILA’s full wage scale committee and the scheduling of a ratification vote from the full membership. The wage scale committee consists of more than 200 ILA union locals from Maine to Texas. The new agreement and all its benefits are retroactive to 1 October 2024, and, if ratified by ILA members, will be in effect until 30 September 2030. ILA rank-and-file members will receive details of the agreement approved by the wage scale committee at local meetings over the next two weeks and then participate in the ratification vote on 25 February. The specific details of the agreement will not be made public. The two sides agreed on the financial part of the deal in early October, ending a three-day strike, with commitments to continue negotiating on other issues, specifically automation and semi-automation at ports, which the union opposed because of the threat of losing jobs previously done by humans. The labor issue would have had no impact on liquid chemical tanker traffic in and out of ports as they typically serve private terminals and do not require the same labor as container ships. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks.
INSIGHT: EU-Chile trade deal could benefit chemicals indirectly via higher minerals supply (part 1)
SAO PAULO (ICIS)–An interim trade accord between Chile and the EU kicked off on 1 February and the 27-country bloc is not shy about its main objective: get preferential access to the Latin American nation’s vast resources of raw materials. Chemicals players on both sides have welcomed the trade deal, although trade in chemicals is likely to remain limited as Chile’s natural trading partners in the sector have always been the US and Asia. Under the terms of the free trade agreement (FTA), 99.9% of EU exports will enter Chile duty-free, whilst EU firms gain equal treatment with domestic companies across Chilean service sectors, including finance, telecommunications, maritime transport, and delivery services. European businesses bidding for government contracts in Chile, Latin America’s fifth-largest economy, will receive enhanced market access through streamlined procurement procedures. CHEMICALS: COLATERAL WINNERS?While chemicals companies in Chile and the EU may not feel much of an impact from the trade deal, chemicals players in the 20-million population Latin American economy showed relief that closer ties are being developed with the EU, rather than China. In 2023, the EU enjoyed a trade surplus in chemicals with Chile of €120 million, the result of EU exporting €770 million worth of chemicals to Chile, while the latter’s exports to the EU stood at €649 million, according to figures from Europe-wide chemicals trade group Cefic. In a written response to ICIS, a spokesperson for Cefic said three quarters of the EU exports to Chile were consumer chemicals and specialties. In the case of Chile’s exports to the EU, 80% of them were of inorganic chemicals. Cefic said that while chemicals are not at the center of the trade deal, lithium and other minerals as well as metals are, and that could ultimately benefit the chemicals industry if the EU was to achieve a (green) industrial revival. In fact, the interim deal which came into effect on 1 February, which replaced a previous association agreement, included changes and updates to energy and raw materials: the association agreement came into force in 2002: hydrogen and lithium existed already then, but were little spoken about. On the one hand, EU chemicals firms cannot wait to see their energy bills fall, and more so following the 2022 energy and natural gas shock after Russia invaded Ukraine. Chile’s prime position to produce green hydrogen – strong sunlight and winds for the renewable energy, and abundant water – could turn the country into an exporter of the gas upon which most hopes to decarbonize the industrial sectors have been placed. Green energies such as hydrogen have the potential to lower the EU’s high energy bill. Several European companies have announced plans to build green hydrogen plants in Latin America – where costs are lower than at home – aiming to export to Europe most of the hydrogen produced. On the other hand, EU manufacturers are anxious to secure stable supply of the minerals they require to make the green transition the EU itself is pushing them to implement. By having access to those minerals, manufacturing in the EU could see a revival and indirectly push up demand for chemicals. “While EU-Chile chemicals trade is not major in comparison with other trade relationships, trade with Chile is important, especially due to Chile’s leading position in the supply of certain raw materials,” said the Cefic spokesperson. “Chile is a key supplier of lithium and copper for the EU, two metals that are key for the EU chemicals industry in applications like cathode active materials for EVs [electric vehicles] or catalysts. In the future, Chile’s hydrogen exports can also become even more relevant due to the EU’s green transition.” In terms of polymers, Chile’s annual consumption stands at around 1.3 million tonnes, and the country’s output is far from covering even half of that, according to figures by the country’s plastics trade group Asipla. Local production of polymers, said Asipla, stands at 260,000 tonnes, comprising 200,000 tonnes from recycling and approximately 60,000 tonnes of virgin material. Some company names include Petroquim, Chile’s sole producer of polypropylene (PP), or Styropec producing polystyrene (PS) and expandable polystyrene (EPS). Magdalena Balcells is Asipla’s CEO, and one of the most no-nonsense lobbyists this correspondent has met in almost two years in Latin America. In June last year, her straight talk at an industry event captivated the audience – although that audience was, of course, friendly terrain. “Despite China’s transition from petrochemical importer to exporter in the past few years, producers like Petroquim have been able to maintain their market position through established client relationships built on trust, certification, and rigor: advantages which are less predictable with Chinese suppliers,” said Balcells. In this interview, like in a previous one in 2024, Balcells insisted Chile’s policymakers tended to think the country is a developed economy where recycling policies could be easy to implement. This push, however, has prompted many plastic companies to get a grip with sustainability, she said, and that can only be a good thing. On trade relations, Asipla’s CEO is crystal clear on her feelings about China. Asked whether a deal with the EU, any deal, will always be preferable to one with China, she said: “Always preferable. The EU and Chile share a common language, a common way of doing business and trade. Chile’s OECD membership facilitates European trade relations. With China, everything becomes… very difficult,” said Balcells. “Chinese exports of industrial goods imports continue to present a significant challenge in terms of price competition, across many industrial sectors, in Chile and the wider Latin America. But for Chile, the EU is a very important commercial partner and one with which it is still relatively easy to operate. This FTA should be a positive.” In a written response to ICIS, the head of logistics at Petroquim, Jorge Gaete, confirmed the company does not expect a great impact from the EU-Chile trade deal, but welcomed it nevertheless as it should benefit the Chilean economy as whole and partly protect it from the new protectionist wave. “This FTA is not of great importance for the chemical industry, and we don’t expect it to represent major benefits for Petroquim. This trade deal, however, is important for the issue of minerals such as lithium and copper, which are the great reserves Chile has,” said Gaete. “Moreover, now with the [US President Donald] Trump government and all the reforms he is implementing or planning to implement, including the increases in import tariffs, I believe that we as a country will benefit from the agreement with the EU.” Last week, Trump mentioned tariffs on metals, including copper, which would hit the Chilean economy hard: the country is the second largest producer of copper globally, and its exports are a key employment- and foreign reserves-generator. Chile’s chemicals trade group Asiquim did not immediately respond to a request for comment. This article is the first part of this Insight. The second part, to be published on Wednesday (12 February), will focus on Chile’s vast natural resources, paramount to kick start green mobility and green industry, and the EU’s desire to get hold of as much of them as it can  Insight by Jonathan Lopez Front thumbnail: Shipping containers with flags of Chile and European Union (Shutterstock)
PODCAST: Only strong political action can save EU chemicals
BARCELONA (ICIS)–Europe’s petrochemical sector is in the middle of a crisis  which EU leaders can only solve through bold action, according to Ilham Kadri, president of Cefic and CEO of Syensqo. More than 11 million tonnes of European chemicals capacity slated to close Decline can be reversed with strong EU political action Simplify bureaucracy, lower energy costs, finance low carbon transition EU needs to stimulate demand for low carbon products, create level playing field against global competition Time to turn words into action through EU Clean Industrial Deal, new chemicals strategy Chemicals CEOs in Europe need to examine their portfolios to identify where they can win against global competitors Europe has a lot to offer – cutting edge technology, talent Region needs a strong economy and that is only possible with a strong chemical industry In this Think Tank podcast, Will Beacham interviews Ilham Kadri, CEO of Syensqo and president of Cefic and the International Council of Chemical Associations (ICCA). This interview was recorded on 31 January, 2025. 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.
US’ 25% tariffs on all steel, aluminium imports start 12 March
SINGAPORE (ICIS)–The US will start imposing 25% tariffs on all steel and aluminium imports starting 12 March, under the executive order signed by US President Donald Trump on 11 February. For South Korea, the US’ decision effectively cancels the annual tariff-free quota agreed upon between the two countries since 2018. South Korea currently benefits from duty-free quota for 2.63 million tonnes of steel exports to the US, set under a 2018 bilateral agreement – based on 70% of the northeast Asian country’s 2015-2017 average annual exports – with US tariffs applying to excess volumes. At the close of trade on Tuesday, shares of South Korean steel firm POSCO was down 0.84%, while the benchmark KOSPI Index inched up 0.71% to close at 2,539.05. Foreign steel accounts for about 25% of US steel consumption, with Canada, Brazil, and Mexico being the largest suppliers, followed by South Korea and Vietnam, according to data from the American Iron and Steel Institute (AISI). The new tariffs would terminate tariff-free quota deals with South Korea and other major metal exporters to safeguard American industries, the White House document said. “Increasing and persistently high import volumes from countries exempted from the duties or subject to other alternative agreements like quotas and tariff-rate quotas have captured the benefit of U.S. demand at the domestic industry’s expense and transmitted harmful effects onto the domestic industry,” Trump said in the document. “From 2022 to 2024, imports from countries subject to quotas (Argentina, Brazil and South Korea) increased by approximately 1.5 million metric tons, even as U.S. demand declined by more than 6.1 million tons during the period.” Trump also on 10 February announced plans to impose “reciprocal” tariffs on countries with duties on US goods within the next two days. ICIS senior economist for global chemicals Kevin Swift had said that the US tariffs on steel and other metals would translate to higher cost and could ultimately reduce capital expenditure in chemicals and industrial plants.
BLOG: The first of three things you should do during the rest of this downturn
SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. At first glance, the latest ICIS ethylene operating rate forecast is alarming. Even by 2035, global operating rates could still be below their long-term average—potentially marking a 14-year downturn since the Evergrande Turning Point in late 2021. But here’s the good news: This is a live situation, and industry adaptation is inevitable. The future is not set in stone—it will be shaped by the decisions we make today. The Data Speaks • ICIS base case projections show an average 6.3 million tonnes per year of new capacity. • However, by reducing this to 2.5 million tonnes per year, operating rates could return to 87%—the long-term norm. • The question is: When and how will the market rebalance? Plant Closures, Project Delays & Cancellations: The Unknowns Balancing the market means making difficult decisions, but shutdowns and project delays are far from straightforward: • Timing uncertainty – Could the upturn come sooner than expected? • High exit costs – Environmental clean-up and pension liabilities complicate shutdowns. • China’s role – Ageing plants, coal-based capacity, refinery feedstock limits, and regulatory shifts could drive rationalisation, but when and to what extent? • Government intervention – Will policy sustain industries in Europe & South Korea, or will we see major consolidations? Your Three-Point Plan for Success 1. Update the data every six months – Ethylene is just the start. Conduct the same detailed analysis for every product, country, and region. 2. Stay ahead of trade policy – As global trade tensions rise, import tariffs will shift market dynamics. Companies that act early will gain an advantage. 3. Leverage AI & analytics – Cost savings and efficiencies from AI-driven tools like Ask ICIS are already transforming decision-making. What This Means for You Yes, the downturn is severe, but opportunities remain. A data-driven approach will enable your business to adapt, optimise, and position itself for the recovery. Are you ready? Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.
  • 1 of 5799

Contact us

Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.

Contact us to learn how we can support you as you transact today and plan for tomorrow.

READ MORE