Dow Says High Power Costs Cast Doubt on Europe's Demand Outlook [Financial Post (Toronto, Ontario, Canada)]
Dow Inc. (DOW)
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Source: Financial Post
Author of the article: (Bloomberg) — The boss of Dow Inc. said the price of electricity in Europe is so high that there are doubts about the long-term future of some of the chemical company's industrial customers in the region. “When I look at my downstream customers in Europe, I'm always questioning how long will they be there,” Chief Executive Officer Jim Fitterling said in an interview Tuesday in Houston, also citing the weakness of durable goods demand. “And if you don't have the domestic market in Europe to service, you really can't afford to export from Europe.” Article content Article content Fitterling pointed to the huge difference in natural gas prices between Europe and the US, where the fuel currently trades at less than $2 per million British thermal units. While he sees a longer-term trend at around $2.50, current European benchmark gas prices are more than three times higher than that. Read More: Hess Urges US to Speed Refill of Strategic Oil Reserves: TOPL
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