Lanxess sees oil price in range of $100-$110 per barrel
FILE PHOTO: The headquarters of chemicals maker Lanxess are seen in Cologne, Germany November 15, 2018. REUTERS/Wolfgang Rattay/File Photo
May 7 : 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 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.
He said that pressure from Chinese competition in Europe was also starting to ease as higher energy costs hit Asia harder than Europe.
"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.
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.
Zachert said that dynamic was now shifting as the Middle East conflict changed relative energy costs and competitiveness.
