Episode 1360: Think Tank: Dow closures show Europe faces choice to save chemical industry

European politicians must decide if they want to save the region’s chemical industry as the wave of energy-intensive closures continues. 

-          Dow to close cracker at Bohlen, Germany plus two other sites with loss of 800 jobs

-          More than 5 million tonnes/year of ethylene capacity now under threat in Europe

-          Industry still faces high energy costs, regulatory burdens, unfair competition

-          China will continue to add capacity at least to 2030

-          China chemical plants running at higher-than-expected operating rates

-          Importing ethylene and propylene can be expensive

-          Political support will be vital to save Europe’s chemical industry

-          New US tariffs may see two-tier chemical markets emerge in Asia

-          Uncertainty and chaos likely to persist