Europe’s Weak Gas Demand Signals Industrial Malaise Taking Hold
- Industrial gas usage is projected to be 20% below 2021 levels
- Economic concerns weigh on activity despite 80% price drop
This article is for subscribers only.
Manufacturers from chemicals to metals and machinery curbed production last year in the fallout from Germany’s energy crisis. As the cutbacks linger, it’s a sign that a deeper industrial malaise is setting in.
The record-high prices that were triggered by Russia’s squeeze on deliveries last year are now gone, but worsening economic conditions are hitting demand just as hard. Gas usage across Europe’s industrial landscape is projected to remain about 20% below 2021 levels, according to data from S&P Global Commodity Insights.