Factbox: Coronavirus impacts EMEA petrochemicals markets

As the UK follows other European nations in restricting movement in an attempt to limit the spread of the coronavirus pandemic, the European petrochemical industry is facing unprecedented challenges and uncertainty.

With borders across Europe closing, supply chain concerns are rising.

"The market is caught between a rock and a hard place, with demand destruction as a result of the coronavirus pandemic and the OPEC price war, which could see crude oil prices below $20/b in the coming months," said Rob Stier, senior manager petrochemical analytics at S&P Global Platts. "Supply chain and logistics constraints could result in producers having to cut rates regardless of margins. We are in unchartered territory but the risk for the next three-six months are still to the downside."

The following are the latest developments in the European petrochemical industry.

PRICING

**The European butadiene industry-settled April contract price dropped Eur195/mt from its March level to Eur525/mt FD NWE, on falling feedstock costs and uncertain demand.

**In methanol, Europe has become the lowest priced region this week, with April deals done at Eur170/mt Monday, putting the FOB Rotterdam spot price at a 37% discount to the Q1 European contract price.

**MTBE was assessed below the $200/mt this week, the lowest seen since November 19, 2001, Platts data showed.

**As European IPA reaches fresh all-time highs, Ineos announces plans to build hand sanitizer plants in the UK and Germany, utilizing its ethanol and IPA production.

**PP fiber spot prices softened in Turkey on Tuesday, amid bearish sentiment.

PRODUCTION

**Spain's CEPSA declares force majeure on phenol and acetone.

**KemOne to delay re-start of Lavera chlor-alkali plant due to the impact of coronavirus on workforce availability.

TRADE FLOWS

**Polymer converters are witnessing delivery costs rising amid border delays for testing and screening truck drivers.

**PVC producers face the cancellation of volumes.

**ACN demand drops as downstream facilities close due to a lack of workers

**Recycled plastic markets in Europe are faring slightly better than virgin polymer markets, particularly R-PET and R-HDPE, which largely serve food packaging and consumer healthcare products.

**Waste collection and recycling sites are facing closures, putting pressure on the supply of post-consumer plastics and converters are showing uncertainty over how much volume to stock.