EU chemicals production in October expanded by 1.8 per cent compared to the year prior, according to the latest Cefic Chemicals Trends Report released today. The October reading confirmed the recovery trend followed by the EU chemical sector that began in the second quarter of 2013. EU chemicals production during the first ten months of 2013 remained 6.9 per cent lower than the pre-crisis, full-year peak level reached in 2007.
The EU chemicals net trade surplus stood at €37.9 billion during September 2013 – a €863 million improvement on the same period in 2012. Chemical prices in the European Union for October 2013 were 3.0 per cent lower than in October 2012. January-to-September 2013 sales were 3.7 per cent below the first nine months of 2012. The EU chemicals confidence indicator (CCI) improved in November 2013 compared to October 2013. Capacity utilisation in the EU chemical industry increased from 78.1 per cent in the second quarter of 2013 to 79.3 per cent in the third.
Production dragged down by petrochemicals
Petrochemicals output dropped by 4.9 per cent in October 2013 compared with October 2012. The steep drop in petrochemicals was partially offset by strong growth in polymers, up 7.1 per cent in October year on year. Output of specialty chemicals expanded by 2.7 per cent and consumer chemicals grew by 1.4 per cent. Basic inorganics registered 0.2 per cent growth during the same period.
EU chemicals production decreased 0.6 per cent for the first ten months of 2013 compared to the same period in 2012. The recovery in the EU chemical industry remains fragile since pulling out of recession in second quarter 2013.
October 2013 chemical prices below 2012 levels
EU chemical producer prices in October fell 3.0 per cent compared to the same month the previous year, while producer prices for the first ten months of 2013 were 0.6 per cent lower than the comparable period in 2012. Producer prices for EU chemicals during the first ten months of 2013 remained 12 per cent higher than the pre-crisis, full-year peak level reached in 2008.
September chemical sales down, but remain slightly above pre-crisis levels
EU chemical sales in September were 2.1 per cent lower compared with the same month the previous year, while sales for the first nine months of 2013 were 3.7 per cent less than during the same period in 2012. EU chemical sales during the first nine months of 2013 remained 0.9 per cent higher than the full-year peak level reached in 2008 before the crisis.
Net trade surplus widens in September
The EU chemicals net trade surplus continued to grow, reaching a record level of €37.9 billion during the first nine months of the year. The surplus was led by a €11.9 billion positive trade balance with non-EU countries in Europe, which includes Russia – €0.6 billion more than in January-September 2012. A €5.6 billion surplus with Asia – excluding Japan and China – occurred during the same period, marking a €1.6 billion increase compared with the same period in 2012. The EU net chemicals trade surplus with China decreased slightly from €0.92 billion in January-September 2012 to €0.76 billion in January-September 2013, while the United States narrowed significantly its chemicals trade deficit with the European Union by €1.7 billion to €5.1 billion.
Improvement in the EU chemicals confidence indicator in November
The EU chemical industry confidence indicator (CCI), generated by Cefic, registered an improvement in November 2013 compared with October. Current overall order books for the coming months contributed to the positive change. Production expectations for the months ahead registered a downturn in November, however, compared to October 2013. The confidence reading for the sector in November was above the long-term average, measured from 2005 to 2012, for the third consecutive month. Capacity utilisation in the EU chemical industry increased from 78.1 per cent in the second quarter of 2013 to 79.3 per cent in the third. But it remains 6.0 per cent below the post crisis peak level recorded in second quarter 2011.
