European Chemical Industry Upward Trend Goes On: Europe's Chemical Industry Back On Track?
Europe's chemical industry continues its upward trend for the eighth month in a row: Output surged 2.8 per cent year-on-year in the first four months of 2014, latest data from Europe's chemical industry association Cefic shows.
First quarter capacity utilisation registered its highest level in three years. Overall confidence remains above its long-term average. EU chemicals prices fell 2.6 % during the first four months of the year. Because prices fell, the total value of EU chemical sales during the first three months of 2014 was unchanged compared to the same period of last year.
Cefic Director General Hubert Mandery said: “The sector continues to grow, but we are not out of the woods yet. Energy prices continue to put a strain on commodity chemicals, which are more energy-intensive. Our overall health and ability to compete depend on policy that ensures secure and competitively priced energy and feedstock.”
Year-on-Year Output up 2.8 % Through April
Despite overall expansion, petrochemicals output continued to contract in April, down by 0.8 per cent compared with April 2013. This drop was partially offset by a 5.1 per cent surge in output of specialty chemicals and a 2.0 per cent increase in basic inorganics.
Polymers grew by 1.9 per cent year-on-year, while consumer chemicals output eased 0.2 per cent. Petrochemicals monthly output has remained below trend growth rates since September 2011, and is far below its post-crisis peak during first quarter 2011.
Prices Fall in April, with Petrochemicals Leading the Way
EU chemicals prices continued to decline in April, down by 1.9 per cent compared with April 2013. This decline was partly due to a steep fall in petrochemicals prices, which fell 4.1 per cent. Year-to-date measures show EU chemical producer prices in the first four months of 2014 slipped 2.6 per cent year-on-year, with petrochemicals prices dropping 4.7 per cent.