European politicians must decide if they want to save the region’s chemical industry as the wave of energy-intensive closures continues.

- Dow to close cracker at Bohlen, Germany plus two other sites with loss of 800 jobs

- More than 5 million tonnes/year of ethylene capacity now under threat in Europe

- Industry still faces high energy costs, regulatory burdens, unfair competition

- China will continue to add capacity at least to 2030

- China chemical plants running at higher-than-expected operating rates

- Importing ethylene and propylene can be expensive

- Political support will be vital to save Europe’s chemical industry

- New US tariffs may see two-tier chemical markets emerge in Asia

- Uncertainty and chaos likely to persist

LONDON (ICIS)--As geopolitical tensions have cooled, the chemicals industry did not have time to react to the spike in oil prices, and the seasonal demand drop in Europe could be more severe than the traditional summer lull.

• China polypropylene flooding global market, outpacing domestic demand
• Chemicals industry as leading indicator warns of wider economic ill health
• Shutdown of plants in Europe is massive crisis
• Vietnam 20% tariff from US will weigh on both economies
• Risks of US cutting social security, international relief funding
• Key economies not as strong as presented
• Climate change needs to be a priority for businesses
• CEO beset with challenging conditions
• Working patterns reshaped by climate change
• Stark landscape provides opportunities for innovators to thrive

In this Think Tank podcast, Morgan Condon interviews John Richardson from the ICIS market development team, and Paul Hodges, chairman of New Normal Consulting.

In this podcast, market editors Zubair Adam (MX) and Miguel Rodriguez Fernandez (PX, OX) showcase the low levels of consumption in Europe.