EU chemicals output shows flat trajectory; trade surplus up by €1.7 bn

EU chemicals output shows flat trajectory; trade surplus up by €1.7 bn

11:16 AM, 14th March 2016
EU chemicals output shows flat trajectory; trade surplus up by €1.7 bn

BRUSSELS, BELGIUM: European chemical output grew just 0.2 percent during the first ten months of 2015 compared to the same period of 2014, according to the latest Cefic Chemicals Trends Report, while producer prices fell 4.7 percent, year-on-year.

Sales were down 3.1 percent during January-September 2015, compared to the same period of 2014. Latest monthly data show that output declined 0.1 percent in October 2015 compared with October 2014 while EU chemicals prices plunged 5.9 percent. The EU net trade surplus was €30.4 billion during the first eight months of 2015, up by €1.7 billion compared to the same period one year ago. Employment rose slightly during the third quarter 2015 to 1.17 million.

With challenging times ahead in the long-term, Cefic predicts marginal growth for European chemical production for 2016. This forecast comes in the face of declining demand from key industries, competition from third countries and economic slowdown in important export markets.

Stagnant output growth through October 2015

Consumer chemicals output generated a significant drop in output of about 2.4 percent in October 2015 compared to one year ago. Petrochemicals and polymers fell, down 1.5 percent compared with October 2014. The drop was partially offset by 3.0 percent growth in output of specialty chemicals. Basic inorganics grew by 1.6 percent. Overall, EU chemicals output dropped – just 0.1 percent in October 2015 year-on-year – and for the first ten months was up just 0.2 percent compared to same period of 2014.

Chemical prices slide 4.7 percent in October 2015

Petrochemicals prices declined significantly by 14.6 percent in October 2015 compared to the same month of 2014. Polymers prices showed a decrease of 3.8 percent during the same period. Specialty chemicals experienced a modest decline of 0.7 percent. Consumer chemicals prices went up by 1.3 percent in October 2015. All in all, producer prices in the EU chemicals sector declined 5.9 percent in October 2015 (year-on-year). Last but not least, chemicals prices were down 4.7 percent during the first ten months of 2015 compared to the same period one year ago.

Chemical sales down 3.1 percent during January-September 2015

Total EU chemical sales dropped 3.1 percent during the first nine months of 2015 compared to the same period one year ago. Sales in September 2015 declined by 3.3 percent compared to September 2014, reaching the same level of sales in January 2015.

Net trade surplus up by €1.7 billion during January-August 2015

The EU net trade surplus was €30.4 billion during the first eight months of 2015, up by €1.7 billion compared to the same period one year ago. The rest of Europe – a group including Russia, Turkey and Switzerland – and the US are by far the largest two contributors to this surplus. However, EU chemicals sector faces a trade deficit with India, China and Japan during the first eight months of 2015. Taking together the three countries; EU chemicals deficit reached the value of €1.0 billion during Jan-Aug 2015.

The net positive trade balance through August 2015 with non-EU countries was €6.1 billion; €1.7 billion lower than in the first eight months of 2014. Underlying this figure was a sharp fall of 15.2 percent or €969 million in net exports to Russia. The EU chemicals trade surplus with Asia – excluding Japan and China – increased by €353 million to €5.16 billion. The EU’s net chemicals trade surplus with China contracted by €675 million. The US further narrowed its chemicals trade deficit with the European Union by €2.3 billion to €5.8 billion during the eight-month period.

Employment rose for the second consecutive time

EU chemical industry employment rose slightly during the third quarter 2015 to 1.17 million, the second consecutive quarter of sector job growth. Data confirms a break from the crisis-induced job losses that began in 2009. Data analysis show sector employment levelling off since first quarter 2010, whilst payroll levels in the third quarter 2015 are 9.4 percent below the peak level reached in third quarter 2007. Capacity utilisation has stabilised and is close to its long-term average.

© Worldofchemicals News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


PolyOne appoints new chief commercial officer

CLEVELAND, US: PolyOne Corporation said it has appointed Michael Garratt as senior vice president and chief commercial officer and Donald Wiseman as s ...

Read more
Comet Biorefining to build bio-based chemicals plant in Canada

LONDON, UK: Comet Biorefining Inc said it has received funding to build the first-of-a-kind advanced bio-based chemicals plant in Sarnia (Ontario), Ca ...

Read more
Technip bags Total E&P Angola’s engineering services contract

PARIS, FRANCE: Technip Angola Engenharia Limitada, a joint venture between Technip SA and Sonangol Group said it has been awarded by Total E&P Ang ...

Read more
AkzoNobel’s new UV clear coat technology for fast-track repairs

AMSTERDAM, NETHERLANDS: AkzoNobel NV’s new ultraviolet clear coat technology enables vehicle body shops can now cut their energy costs by up to ...

Read more
SOCAR-KBR JV bags Baku Oil refinery modernization contract

HOUSTON, US: SOCAR-KBR joint venture (JV) said it has been awarded a significant project management consultancy (PMC) contract for the Heydar Aliyev B ...

Read more
Truck carrying hazardous chemical topples, spillage creates scare

BENGALURU, INDIA: A tanker transporting a poisonous chemical, Thionyl Chloride, toppled on the vital NICE peripheral ring road close to Kengeri (a sat ...

Read more