According to the European Chemical Industry Council (Cefic), the European Union will experience a trade deficit of 5.6 billion euros in the first half of 2022 as a result of importing more chemicals than it exports, both in terms of volume and value. One of Europe’s most energy-intensive industries, the chemicals industry is having trouble competing globally with businesses in areas where energy costs are lower.
Marco Mensink, Cefic’s chief general, said that they are moving toward the final turning point, assuming no crisis answer for the energy costs is given to their area, and they are quite close the limit.
Marco Mensink went on to say that hundreds of chemical companies are already fighting for their lives and have begun to see the first closures. They must act immediately. Cefic wants member states and the European Commission to agree on a pan-European plan to reduce energy consumption, increase energy supply, and limit the impact of energy prices.
Russia’s ongoing restriction on natural gas flows has had a significant impact on European businesses. According to the most recent quarterly Gas Market Report released by the International Energy Agency, Russian gas supplies to Europe have decreased by 50% since the beginning of the year, causing international prices to reach new all-time highs. The IEA anticipates that market tightness will persist well into 2023 and may even worsen.
Prior to its official third-quarter results, BASF, the world’s largest chemical company by earnings, indicated that its net income would be significantly lower than the same period last year, at 909 million euros, compared to 1253 million euros in 2021. Cefic’s warning comes after BASF’s announcement. As a result of its stake in Wintershall Dea, an oil and gas company with shares in the Nord Stream 1 pipeline, BASF has lost 740 million euros. When the Nord Stream 2 project was canceled due to Russia’s invasion of Ukraine, BASF lost 1.1 billion euros.
Writing is a medium to express feelings and convey facts. A creative mind never rests in peace and this amazing platform gives me the freedom to write about what I like most.
I’ve been a writer/blogger for the last twelve years and have covered technology-related topics. However, I also have considerable years of experience in writing for various domains – Technology, Beauty, Fashion, Pharmaceutical, human psychology etc. Technology is my forte.
I’ve handled many interesting projects. Writing is my passion. As an author, I’ve learned a lot in my long journey of penning down my thoughts!
