Chemical Week Navigating the 2025 chemical landscape: growth, challenges, and future strategies in Europe and China
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Jan 14, 2025 The discussion covers Europe's chemical sector grappling with high energy costs and low demand, amid a backdrop of geopolitical issues. It highlights the push for sustainability and innovation, yet stresses the challenges of overcapacity. Meanwhile, China's chemical industry is seeing a boost from government stimulus, spurring demand in petrochemicals, but faces trade tensions with the US. The country also aims for net-zero emissions by 2060, grappling with the transition to renewable products and enhancing plastic recycling efforts.
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Europe's Chemical Sector State
- Europe's chemical output grew in 2024 but from a low level after a steep decline in 2023 due to the war in Ukraine.
- The sector still faces challenges like high energy costs, weak demand, and global overcapacity.
European Petrochemicals Outlook
- European petrochemicals face a gloomy outlook with weak demand and low production margins.
- Announced cracker closures will help, but more needs to be done to restore market balance.
European Chemical Companies' Strategies
- European chemical companies are cutting jobs and reorganizing due to weak demand and high costs.
- They need to focus on longer-term strategies beyond short-term crisis management.