European chemicals output increased fourth consecutive month
The Cefic report also indicated that EU chemicals prices were down 2.8% over the same period. Meanwhile, industry sales during full-year 2013 were down 3.3% on 2012.
The EU chemicals sector continued to show a strong trade surplus, but growth of the surplus has slowed markedly in recent years, swelling only €1.0 billion to €48.8 billion in 2013. Confidence levels for the sector remained broadly unchanged in March 2014 compared to February 2014. But trends in capacity utilization and employment were negative. Capacity utilization eased, to 78.8% in the fourth quarter, from 79.1% in the third quarter, while employment in the EU chemical industry fell 1% during 2013.
Cefic Director Hubert Mandery said: “Growth is recovering only slowly; we have yet to return to the level of output achieved seven years ago, before the crisis. The data highlight the urgent need to bring about the European industrial renaissance proposed by European policymakers”.
EU trade surplus expands further in 2013
The EU chemicals net trade surplus continued to grow, reaching a record €48.8 billion during 2013. The biggest surplus―of €15 billion, up €0.9 billion―was with non-EU countries in Europe, including Russia. The EU chemicals trade surplus with Asia―excluding Japan and China―reached €7.3 billion, €2.3 billion more than during 2012. The EU net chemicals trade surplus with China decreased slightly from €1.5 billion in 2012 to €1.3 billion in 2013. And the US continued to reduce its chemicals trade deficit with the EU, which fell by €2.1 billion to €6.4 billion.
Output rises in January but petrochemicals fall
Petrochemicals output continued to contract in January 2014, down by 4.2% compared with January 2013. This steep drop was partially offset by a 7.2% surge in output of polymers and a 6% expansion in basic inorganics. Specialty chemicals grew by 4.9% month-on-month while consumer chemicals output rose 3.3%. Petrochemicals monthly output has continued to perform below trend growth rates since September 2011.
Prices slide in January, with petrochemicals leading the way
EU chemical producer prices in January were down 2.8% year-on-year, with petrochemicals prices down 5.1%. But in 2013 overall, producer prices remained 11.8% higher than the pre-crisis, full-year peak reached in 2008.
Sales grow in the second half of 2013
Sales increased in December 2013 for the sixth consecutive month. Year-on-year, Decembers sales were up 2.3%. However, total EU chemicals sales during 2013 were 3.3% lower than during 2012, and just 1.1% higher than the pre-crisis, full-year peak reached in 2008.
Confidence remains broadly flat in March 2014
The EU chemical industry confidence indicator (CCI) generated by Cefic remained flat in March. The CCI monthly reading reflected companies’ lower output expectations, although the total order bookings for the coming months and current stock levels improved slightly. This is in line with the EU manufacturing confidence indicator, showing a marginal decrease of 0.3 points in March 2014 compared to February 2014. During the fourth quarter of 2013 capacity utilization in the EU chemical industry decreased slightly, to 78.8%. It remains 6.6% below the post-crisis peak recorded in the first quarter of 2011.
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