LONDON (ICIS)--Europe oxo-alcohols and derivatives markets continue to be blighted weak downstream demand in June with key end-use segments, including automotive, construction and paints and coatings remaining sluggish.

Acrylate esters editor Mat Jolin-Beech talks with glycol ethers editor Cameron Birch and oxo-alcohols and butyl acetate editor Marion Boakye about conditions in these markets and expectations for the near future.

Europe’s chemical distribution sector is bracing for the impact of multiple geopolitical and economic challenges, including the Israel/Iran conflict.

- All Iran’s mono ethylene glycol (MEG), urea, ammonia and methanol facilities have been shut down

- For methanol this represents more than 9% of global capacity, for MEG it is 3%

- Brent crude spiked from $65 to almost $75/bbl, reports of attacks on gas fields and oil infrastructure

- If Iran closes the Strait of Hormuz this will severely disrupt oil and LNG markets

- Expect extended period of volatility and instability in the Middle East

- European distributors brace for a VUCA (Volatile, Uncertain, Complex, Ambiguous) world

- Suffer prolonged period of poor demand, in tandem with producers, with no sign of an upturn

- Global overcapacity driven by China, subsequent wave of production closures across Europe both a threat and opportunity for distributors

- Suppliers and customers turn to distributors to help navigate impact of tariffs and geopolitical disruption
Click here to download the 2025 ICIS Top 100 Chemical DIstributors list.

In this ICIS Think Tank podcast, Will Beacham interviews Dorothee Arns, director general of the European Association of Chemical Distributors and Paul Hodges, chairman of New Normal Consulting.

The worst chemicals downturn in living memory is forcing ratings agencies to downgrade more companies and raising fears of bankruptcies.

- Chemical company earnings have been bottom-of-cycle since 2023

- Leverage (borrowing) is high compared to historical levels

- Low earnings increase pressure on leverage, raises risk of default

- Fitch has downgraded more chemical companies over last 12-18 months

- Extended trough in chemicals may lead to bankruptcies

- Operating rates have not recovered as they did after Global Financial Crisis

- Fitch expects gradual recovery from 2026

- A lot more closures needed to rebalance market – could delay recovery

- Ratings agencies look at company costs, strategies and compare to peers

- Diversification of geography and product helps manage risk

In this ICIS Think Tank podcast, Will Beacham interviews Guillaume Daguerre who leads Europe chemicals for ratings agency Fitch, John Richardson from the ICIS market development team, ICIS Insight Editor Tom Brown and Paul Hodges, chairman of New Normal Consulting.
Click here to register for the ICIS/European Association of Chemical Distributors (Fecc) distributors CEO round table on Monday 16 June.