European olefins: mid-year review and where do things go from here?

Following the uncertainty that came in the first half of 2020 with the global pandemic, the first half of 2021 has for most European olefins producers been a welcome gift. Steadfast market balances, reflected by higher pricing levels for both olefins and primary derivative products have supported industry earnings. Integrated producers particularly have been well placed. As the market moves through 2021 and into 2022, the coronavirus pandemic in relative terms is expected to draw towards the closing chapters. Oil prices have remained high in recent weeks driven by much better balance in the market with continued controls from OPEC+. Where could things go from here for the European olefins markets? This insight will explore the economics, supply/demand and investments that are set to continue to shape the short and medium-term outlooks.