PODCAST: Europe chemicals suffer lowest operating rate since 2008, global industry in doldrums

BARCELONA (ICIS)–Chemical industry operating rates in Europe continue to fall, hitting their lowest level since 2008, while the industry globally suffers low rates too.

• Europe operating rate drops to 55%, worst since 2008
• Region suffers poor demand, high energy costs
• Companies must cut fixed costs, but focus on net zero transformation
• Global operating rate remains below 70% for fifth month
• Northeast Asia (mainly China) operating rates drop to 68%
• Future of China’s economy for 2023 uncertain
• Negative demand growth, overcapacity hurting China
• North America operating rates also languish at 68%
• US polymer additions require export markets

In this Think Tank podcast, Will Beacham interviews ICIS Insight Editor Nigel Davis, ICIS Senior Consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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Read Paul Hodges and John Richardson’s ICIS blogs.