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.

HOUSTON (ICIS)—US polyethylene terephthalate (PET) Markets Reporter Melissa Wheeler, Vice President of the North America PET/Polyester Chain, Antulio Borneo, Senior Recycled Plastics Editor, Emily Friedman, Latin America PET Senior Markets Editor, Daniel Lopes discuss the implications to the virgin PET and recycled PET (R-PET) markets as a result of tariffs and anti-dumping duties.

PET and R-PET market factors discussed include:

• US PET, R-PET demand outlook for peak summer season
• Canada’s anti-dumping duties (ADD) investigation on China, Pakistan
• R-PET, PET production and capacity changes
• Latin America PET protectionism continues

Recent revisions of recycled content targets from major brands have led to questions about just how committed companies are to reducing their consumption of virgin plastic - but what are the underlying issues behind such decision? In this third episode of Sustainably Speaking, ICIS' Senior Executive, Business Solutions Group John Richardson is joined by Mark Victory and Matt Tudball, Senior Editors for Recycling Europe, and Helen McGeough, Global Analyst Team Lead for Plastic Recycling at ICIS to dive deeper into this topic.

Key topics covered during the discussion include:

• Revised down recycled content targets do not mean lower recyclate demand
• The impact on current and future investment decisions for both mechanical and chemical recycling
• The importance of improving access to good quality feedstock
• The role of consumers and consumer pressure
• Spreads between packaging and non-packaging grades remain high, particularly for recycled polyolefins
• The impact of regulation on the US and European markets

As chemical producers gain access to more renewable energy, and portfolios evolve, distributors and downstream customers can look forward to more availability of low carbon, low fossil content products.

- Distributors can help communicate sustainability data up and down industrial value chains

- Full lifecycle analysis is required to truly measure a product’s environmental footprint

- Vital to have standard measurements for carbon footprint

- Chemical industry has a 25-year innovation cycle, more investment needed to accelerate this

- Wave of low carbon products expected in next 2-3 years

- Azelis is sticking to its environmental targets

- Customers drive demand for more low carbon products

- Renewable energy will cut fossil content of distributor product portfolios

- Smaller chemical companies drive low carbon innovation in Asia

- Reshoring will drive national or regional chemical value chains

LONDON (ICIS)--Europe oxo-alcohols and derivatives markets continue to face blighted downstream sentiment in May tied to ongoing US trade developments and wider domestic economic malaise pertaining to principle end user segments including automotive, constriction and wider paints & coatings business.

Better availability has facilitated further price pressure in May with few signs of a let up in the short term. Supply changes remain critical for price discovery.

Glycol ethers editor Cameron Birch speaks to oxo-alcohols and butyl acetate editor Marion Boakye and acrylate esters editor Mat Jolin-Beech about conditions in these markets and expectations for the near future.

As the 12 June deadline for entries to the ICIS Innovation Awards approaches, a judge and a 2024 winner describe why this topic is so important for the future of the chemical industry and society.

- Innovation breaks down silos, encourages collaboration

- Enables industrial value chains to decarbonise

- Chemical industry provides essential raw materials

- Awards are a chance to get external recognition for your innovations

- Deadline is 12 June, entry is free and quick - click here for full details