The restructuring of Europe’s petrochemical industry is accelerating amid high energy and feedstock costs, weak demand, and intensifying global competition, prompting major companies to cut production or shut industrial assets.
Energy and feedstock costs are among the key sources of pressure. Average gas prices in Europe during the period January-April 2026 were around 3.3 times their levels in the US, according to the European Chemical Industry Council, while chemical capacity utilization in the European Union remained at historically low levels of 74-75%.
The restructuring of Europe’s petrochemical industry is accelerating amid high energy and feedstock costs, weak demand, and intensifying global competition, prompting major companies to cut production or shut industrial assets.
Energy and feedstock costs are among the key sources of pressure. Average gas prices in Europe during the period January-April 2026 were around 3.3 times their levels in the US, according to the European Chemical Industry Council, while chemical capacity utilization in the European Union remained at historically low levels of 74-75%.
