Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 30 November.

No-deal Brexit risks remain high despite EU Council backing – Germany’s VCI
The EU Council’s backing of the UK to exit the 28-country bloc is only the first step to reaching an accord, with the fate of the chemicals sector still hanging in the balance, according to Germany-based industry trade body VCI.

BASF halts Ludwigshafen TDI production on Rhine woes
BASF has halted production of toluene di-isocyanate (TDI) at its Ludwigshafen, Germany, verbund complex due difficulties transporting raw materials down the River Rhine, the company said.

Poland’s Azoty closes Compo acquisition without stating debt load
Grupa Azoty has closed the acquisition of German specialty fertilizers producer Compo Expert Group for €9m less than the maximum possible price, but Raiffeisen Centrobank (RCB) said that non-transparency over acquired debt in the agreement remained a big worry.

EU chems likely to shift production processes with emissions targets – Commission
Proposed EU emissions reductions targets to 2050 are likely to prompt chemicals producers to shift to new production processes such as renewable hydrogen or sustainable biomass-based feedstocks, according to the 28-country bloc’s executive body.

Industrial competitiveness key to meeting EU emissions targets – chems trade groups
A competitive European industry and a strategy for energy-intensive sectors are needed to drive the transformations necessary to fulfil EU 2050 emissions reductions targets, chemicals trade groups said.

Rising electricity costs a ‘big concern’ for Germany’s chemicals industry – VCI
Germany’s position as the second-most expensive country in the EU for electricity prices is a “big concern” for the chemical industry, a spokesperson for the country’s trade group VCI said to ICIS.

EU chems prices, sales up on crude but expectations clouded by trade war
The EU chemicals industry posted higher sales and prices to September, year on year, on the back of rising crude oil prices but global trade conflicts are denting the industry’s prospects, the European chemicals trade group Cefic said.

France’s Arkema credit rating outlook upgraded on post-Bostik deleveraging – Moody’s
Moody’s has upgraded its credit rating outlook for France-based specialty chemicals major Arkema from stable to positive on the back of successful deleveraging since its acquisition of adhesives firm Bostik in 2015 and an improved product portfolio, the US credit rating agency said.

Indorama’s Rotterdam PET force majeure tweaks European sentiment
The mood in the European polyethylene terephthalate (PET) market has been so downbeat, with consistent drops in production costs and crashing Asian prices, that a force majeure declaration at Indorama Ventures in Rotterdam, The Netherlands, has tweaked perspectives.

Urea market in shock as Indian tender fails to prop up prices
The recent decline in urea prices has come as a complete shock for market participants, especially after the Indian tender absorbed a large chunk of supply for the next one month or so.