Chemical Week What might the second half hold for Europe's chemical industry?
Jun 24, 2025
Andy Orszynski, Director of Ethylene and Derivatives at S&P Global, and Yazmine Khan, Director for Aromatics at S&P Global, delve into the future of Europe's chemical industry. They discuss the impact of recent geopolitical tensions and low demand on market competitiveness, especially after the Munich luncheon. Key insights include LyondellBasell’s significant divestments and the mixed industry reactions them. The conversation offers a nuanced view on whether there’s any reason for optimism amidst capacity reductions and high energy costs.
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Depressed Demand and Low Optimism
- Demand in European aromatics remains depressed with no clear signs of improvement.
- Operating rates are low, and industry mood is pessimistic due to ongoing geopolitical and tariff uncertainties.
LyondellBasell's Divestiture Surprise
- LyondellBasell’s divestiture surprises as closures were expected for crackers.
- Private equity's entry into steam cracking may reflect hopes to improve costs or an exit strategy.
Phenol and BPA Rationalization Moves
- Some European phenol and BPA assets are closing or being rationalized due to high costs.
- Rationalization reduces supply slightly but doesn't fully address weak demand or competitiveness.