The European chemical industry is in crisis amid the conflict in the Middle East, which has increased energy prices, reports the Financial Times (FT).
High energy prices and weak demand have already led to the closure of two companies in the chemical cluster in the port of Rotterdam - one of the largest in the world. Although the conflict over Iran has temporarily eased pressure on Chinese producers dependent on supplies of raw materials from the Persian Gulf, the crisis has also led to a new rise in the prices of energy resources and petrochemical raw materials, including naphtha.
Peter Huntsman, CEO of the American chemical company Huntsman Corporation, told the newspaper that the events in the Middle East have further increased energy costs and have shown Europe's vulnerability to external shocks. According to analysts, even if the current crisis temporarily helps some European producers, resolving the conflict could once again exacerbate the industry's problems, the publication notes.