• Episode 1179: Think Tank: Like blocks pulled out of a Jenga tower, chemicals closures could collapse value chains

  • May 14 2024
  • Length: 21 mins
  • Podcast

Episode 1179: Think Tank: Like blocks pulled out of a Jenga tower, chemicals closures could collapse value chains By cover art

Episode 1179: Think Tank: Like blocks pulled out of a Jenga tower, chemicals closures could collapse value chains

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  • Summary

  • The closure of chemical plants in Europe and elsewhere could remove essential raw material supplies, threatening the future of downstream industrial value chains.

    - Global oversupply, driven by China, forecast to reach over 200 million tonnes/year by 2028

    - Interconnected value chains threatened if important raw materials cease production

    - Globally 20 million tonnes of ethylene capacity may need to be shut down by 2030

    - In Europe 5.6 million tonnes/year of polypropylene (PP) capacity may need to close

    - Integrated chemicals sites under threat if parts shut down

    - Industry associations could help plan to maintain critical raw materials supplies

    - Anti-dumping measures could protect exposed markets

    - China polyvinyl chloride (PVC) overcapacity may increase exports globally
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Economics
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