PODCAST: Europe acetone and phenol chain hopeful for 2025, but meaningful recovery unlikely

LONDON (ICIS)–Weak demand continues to be a concern in the European acetone and phenol chain and in the wider chemicals industry and Q4 will remain tough, in view of year-end considerations, but when will demand turn a corner?

Europe ICIS editors Jane Gibson (acetone and phenol), Heidi Finch (bisphenol A and epoxy resins), Meeta Ramnani (polycarbonate), Mathew Jolin-Beech (methyl methacrylate) and ICIS senior analyst Michele Bossi (aromatics and derivatives) discuss current market conditions, in particular demand challenges, in view of residual macro and geopolitical headwinds, although easing interest rates and the trade defense investigation for epoxy bring some hopes and opportunities in Europe.

However, global oversupply driven by growing capacity in China, falling deep sea freight rates making imports more interesting again and the need for restructuring actions in PC and regulatory changes are just some of the challenges that the chain is facing.

• Demand fundamentally weak across markets; Q4 destocking on top
• Acetone/ phenol length to increase when turnarounds end, on poor demand
• Some hopes, but no big expectations of recovery for 2025
• EU epoxy AD case could support more domestic sourcing in 2025
• Global oversupply, Asian exports likely to continue to weigh on the chain
• Restructuring in Europe PC production
• BPA ban in food contact materials a blow, but widely expected/prepared for

Podcast editing by Meeta Ramnani