Lanxess Expects Oil Prices to Stay High Amid Energy Market Disruptions
Lanxess' Outlook on Oil Prices and Energy Market Challenges
By Ozan Ergenay
May 7 (Reuters) - Lanxess expects oil prices to stay high in the coming months, warning that elevated energy costs will continue to weigh on the chemicals sector after the conflict in the Middle East disrupted fuel and feedstock markets.
CEO's Perspective on Oil Price Trends
CEO Matthias Zachert said the company expected oil prices to remain in a range of $100 to $110 per barrel over the next several months, adding that Lanxess aimed to pass on higher costs through price increases.
Impact of Chinese Competition in Europe
He said that pressure from Chinese competition in Europe was also starting to ease as higher energy costs hit Asia harder than Europe.
Potential Market Changes and Company Strategy
"This can change if there's a stronger tendency to peace or it can change for the worse if the escalation on a military side comes through again. Nevertheless, our clear target is to roll that over through price increases, despite having a high oil price," Zachert added.
Shifting Dynamics in the European Chemicals Industry
The European chemicals industry has faced heavy price pressure over the past year as Chinese producers increased exports to the region, helped by trade tensions that made Europe relatively more attractive than the United States market.
Effects of Middle East Conflict on Competitiveness
Zachert said that dynamic was now shifting as the Middle East conflict changed relative energy costs and competitiveness.
(Reporting by Ozan Ergenay in Gdansk, editing by Matt Scuffham)
