Global Chemicals & Materials& Energy News (July 21–27, 2025)

 I. Core Industry News

1. Global Petrochemical Industry Restructuring Accelerates

• Major chemical players like Dow, LyondellBasell, Shell, TotalEnergies, SABIC, BP, Eni are shutting down or selling European assets due to high energy costs and overcapacity.

• Investment is shifting toward Asia and the Middle East, with India and Saudi Arabia emerging as new production hubs.

• Basic chemicals such as olefins, aromatics, and polymers are undergoing a major supply chain reallocation.

2. EU Announces Competitiveness Plan for Chemicals Industry

• The European Commission unveiled a strategy to strengthen the EU chemical sector, including:

  • Launching a Critical Chemicals Alliance

  • Offering decarbonization incentives

  • Improving investment conditions and innovation support

3. US–EU Reach Trade and Energy Deal, Avoid Trade War

• On July 27, the US and EU agreed to:

  • Cap tariffs at 15% on most bilateral goods

  • Increase EU imports of US LNG, fertilizers, and chemicals

  • Enable smoother energy and chemical trade across the Atlantic

4. US Delays EPA Chemical Emission Rule Enforcement

• The US administration granted Dow and 24 other chemical plants a two-year exemption from stricter emissions rules due to "economic and national security concerns."

• Environmental groups condemned the move, citing potential harm to public health.

5. New SVHC Additions & PFAS Delay in EU

• ECHA added three substances to the candidate list for Substances of Very High Concern (SVHC) in July 2025.

• Implementation of PFAS bans in consumer goods was delayed, though long-term restrictions remain in place.

6. Roman Volcanic Ash Technology May Transform Green Cement

• Scientists revisited ancient Roman concrete made from volcanic ash, offering low-carbon, ultra-durable cement solutions.

• The technology is gaining global attention as an alternative in sustainable construction.

7. Plastics Lobby Criticized for Disrupting Global Treaty Talks

• Investigative reporting revealed heavy lobbying by plastic producers at recent global treaty discussions on plastic waste.

• Industry groups reportedly derailed stronger global commitments to ban single-use plastics.

II. Key Trends

Trend	Highlights	Impacted Segments
Industry Relocation	EU asset closures; Asia, India, and Middle East rise as production centers	Olefins, aromatics, base chemicals
Green Tech Shift	Ancient Roman cement tech, CO₂ capture, new SVHC & PFAS limits	Construction materials, solvents
Trade Realignment	US-EU deal supports LNG & chemical flows; reduces tariff tensions	Fertilizers, LNG, plastics
Regulatory Backlash	US delays EPA rule; EU tightens chemical oversight	Chemical manufacturing, ESG policy

III. Price Movements

Crude Oil

• Brent crude remained stable at $68.7–$69.3/bbl

• Key factors:

  • Stable OPEC+ output

  • US–EU trade agreement easing uncertainty

Natural Gas

• Henry Hub price surged to $3.43/MMBtu, driven by:

  • Summer heatwaves boosting air conditioning demand

  • Supply issues from pipeline maintenance

  • LNG exports to Europe increasing

Key Chemicals

• TDI, Polyether Polyols: Spiked 8–12% due to production outage at Covestro in Germany (force majeure status).

• Acrylonitrile, DMF: Saw short-term upward movement due to unplanned US outages.

• PE, PP: Remained mostly stable due to weak downstream orders.

IV. Downstream Market Trends

• Construction: EU construction output remains weak, hurting demand for adhesives, PU foam, and PVC.

• Automotive: EV production growth slows across Europe, delaying orders for engineering plastics.

• Buyer Behavior: Shift toward short-term, regional sourcing over long-term global contracts due to price volatility and supply uncertainty.