Up and down, the European chemical market is even worse

Against the backdrop of escalating geopolitical conflicts in Eastern Europe and global market inflation, changing market fundamentals are changing the landscape of the European chemical industry and are currently becoming the dominant influencers
in the European chemical market.

Downstream demand is decreasing

In the first half of the year, although the European chemical industry also faced the problem of high energy prices, due to strong demand, chemical companies generally obtained high profits
.

ICIS said in the report that there are already signs of weak demand in Europe, and that pessimism is being transmitted upstream
.

At present, there is pessimism in all chemical sub-sectors in
Europe.

Corporate production is slowing

At present, although countries are already actively replenishing their stockpiles, the security of gas supply in Europe is still under threat
.

An acrylonitrile buyer in Europe said the acrylonitrile market had begun to collapse
.

Propylene has been strongly impacted
by the current situation.

Due to insufficient demand and high costs, some polyethylene terephthalate (PET) plants in Europe have been discontinued
.

Global trade flows have changed

One of the important factors dragging down the market is the change in trade flows, and the increase in exports from Asia has also hindered European producers from maintaining profit margins
.

This change has unnerved
the European engineering plastics market.

A European buyer of 1,4-butanediol (BDO) said that BDO demand in the European market is also declining, and for the remaining demand, traders are trying to source from other regions to take advantage of arbitrage opportunities to supplement or completely replace their European products
.