EU Chemical Output Down 2% in 2014, CEFIC says
16.04.2015 -
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Trade surplus in 2014 contracts from all-time high -
"The lack of European growth in 2014 was partly due to falling exports," said CEFIC Director General Hubert Mandery. "Even if the price of oil has fallen here in Europe, lowering producer costs, long-term problems persist, especially the challenge of securing affordable energy supplies"
European chemical production rose 0.2% in 2014, the chemical industry federation CEFIC said in its just-published Chemicals Trends Report. By contrast, sales fell 1% year-on-year against the 2013 figure of €527 billion, and prices sank by 1.8%.
"The lack of European growth in 2014 was partly due to falling exports," said CEFIC Director General Hubert Mandery. "Even if the price of oil has fallen here in Europe, lowering producer costs, long-term problems persist, especially the challenge of securing affordable energy supplies," he said.
Net exports of chemicals from the EU, at €44.1 billion last year, were "significantly" below the record €48.2 billion surplus achieved in 2013, the organization said.
The net positive trade balance with non-EU countries - including Russia, Turkey and Switzerland - was €11.7 billion in 2014, some €3.1 billion lower than in 2013. This is attributed in part to a sharp fall in net exports to important trading partner Russia.
The EU's chemicals trade surplus with Asia - excluding Japan and China - widened by €544 million. But its net chemicals trade surplus with China contracted from €1.3 billion to €671 million. The US further narrowed its chemicals trade deficit with the EU by €889 million to €5.4 billion.
Data from January 2015 show that "the worrying performance continued," the Cefic report says. Output contracted by 0.3 % against January 2014, and selling prices plunged by 6%.
EU chemicals output in January declined by 0.3 % overall, with worst-hit petrochemicals sliding 7.6 % against the same month of 2014. This was partially offset by 4.2 % growth in specialty chemicals. Basic inorganics production contracted by 1%, while output of polymers and consumer chemicals declined 0.6% and 0.2% against January 2014.
Cefic said chemical producers' confidence also deteriorated in the first quarter of 2015 compared to the last quarter of 2014. Moving into the second quarter, order books were thinner and the outlook for production in the coming months had worsened. Stock levels remained unchanged.
