PODCAST: Europe chemicals could suffer elevated energy prices despite rising supply

BARCELONA (ICIS)–European chemical producers may have to keep paying high energy prices as geopolitical instability impacts sentiment more than the fundamentals of supply and demand.

• Europe spot electricity prices up 76% this year, ICIS TTF gas price up 40%
• Fear drives markets more than fundamentals which remain bearish
• Demand is reduced compared to five-year average, supply plentiful
• Above average temperatures forecast into December in Europe
• Gas storage around 90%, well above 5-year average
• New sources of US, Qatari liquefied natural gas (LNG) due onstream in 2025
• Renewable energy will ramp up quickly in Europe
• Donald Trump may increase LNG supply by unfreezing projects

In this Think Tank podcast, Will Beacham interviews ICIS gas and cross-commodity expert, Aura Sabadus, 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.

ICIS is organising regular updates to help the industry understand current market trends. Register here .

Read the latest issue of ICIS Chemical Business.

Read Paul Hodges and John Richardson’s ICIS blogs.