Iran conflict plunges European chemical industry into crisis — FT

BRUSSELS, May 15. /TASS/. The European chemical industry is facing a crisis amid the Middle East conflict, which has exacerbated the rise in energy prices, the Financial Times (FT) newspaper reported. High energy prices and weak demand have already led to the closure of two plants in the chemical cluster of the Port of Rotterdam, one of the largest in the world, according to the publication. Although the conflict around Iran has temporarily eased pressure from Chinese producers dependent on raw materials from the Persian Gulf, the crisis has simultaneously caused a new rise in prices for energy and petrochemical feedstocks, including naphtha, the FT noted. Peter Huntsman, chief executive of Huntsman Corporation, which operates sites across Europe, including Rotterdam, told the newspaper that developments in the Middle East are "pushing energy costs even higher, reinforcing how exposed the UK and Europe remain to external shocks." Analysts estimate that even if the current crisis temporarily provides relief to some European producers, a settlement to the conflict could once again exacerbate the industry’s problems, according to the publication.