BARCELONA (ICIS)–Gas storage is larger and fuller, but the region’s chemical sector faces another difficult winter driven by weak demand and excess capacity, especially in China.
- ICIS TTF gas reference prices in Europe have fallen from more than €300/MWh to €34/MWh in October
- Gas storage in Europe is 95% and should be 100% in November
- More storage and import facilities mean the region is better prepared than last year
- Germany’s industrial demand is 20% below the five-year average
- Cold winter in Asia and Europe would cause problems
- Long-term global supply of liquefied natural gas (LNG) will rise as the United States and Qatar nearly double production.
- Fertilizer demand increases due to falling prices
- European fertilizer sector weakened by cheap imports
- Fertilizer production in Europe has increased from 30% to 70% of its capacity
- China’s demographics and real estate woes will stifle the economy
- China’s chemical exports will continue to rise
In this Think Tank podcast, Will Beacham interview with ICIS commodities expert Aura SabadúsICIS Deputy Chief Fertilizer Director
Deepika Thapliyal, and
Paul Hodges, President of New Normal Consulting.