EU chemicals production dropped 2.5% in first four months of 2013 compared with the same period in 2012, according to the latest Cefic Chemicals Trends Report. Monthly production data for April showed a 3.9% drop compared with the same month the year prior.

Latest trade data show the EU chemicals net trade surplus improved through the first three months of the year, reaching €13 billion, up €0.5 billion compared with the same period of last year. EU chemicals prices were lower on a year-on-year basis in April, down 0.8% during the month against the comparable month in 2012. Sales were 3.4% lower in the January-March time period compared with the first three months of 2012, and remain 2% lower than the peak level reached in third quarter 2008.

Petrochemicals Push Down April EU Output 
A 3.9% year-on-year drop in monthly production for April was noticeably affected by lower output in petrochemicals, which tumbled 11.3%. Polymers and specialty chemicals production dropped by 5.9% and 4% respectively compared with April 2012. Basic inorganics production fell 2% in April 2013 compared to the comparable period the previous year. Consumer chemicals output dropped only slightly during the month, just 0.4% below levels the year prior.

Lower April Prices Led by Petrochemicals, Plastics
Petrochemicals and plastics prices in April fell by 2.9% and 1.1% respectively compared to April 2012, which weighed heavily on the 0.8% overall year-on-year drop for the month. April consumer chemicals prices climbed 0.6% compared with the year prior, while pharmaceuticals prices for the month were up 0.1% year on year. EU chemicals producer prices were 0.8% higher in the first four months of 2013 compared to the first four months of last year.

March Sales March Downward
The 3.4% dip in sales during the first three months of 2013 compared with 2012 was dragged down by a 5.6% year-on-year monthly production drop in March. The total value of sales in January-March 2013 was 2% lower than the peak level reached in third quarter 2008.

YTD Trade Surplus Widens in March
The EU chemicals net trade surplus continued to swell, reaching €13 billion for the first three months of the year. The widening surplus was led by a €3.9 billion positive trade balance with non-EU Europe, a €0.5 billion uptick compared with January-March 2012. A €1.9 billion surplus occurred during that time with Asia, excluding Japan and China - climbing €0.4 billion compared with the same three-month period the year prior. The EU net trade surplus with the NAFTA region narrowed slightly by €0.2 billion to €3.1 billion during the January-March period compared with the same period the year prior. The EU net trade surplus with China grew to €0.3 billion in January-March 2013 from €0.2 billion the same period the previous year. 

No Change For May In EU Chemicals Confidence Indicator
The EU chemical industry confidence indicator (CCI), generated by Cefic, remained unchanged in May compared with the month prior. Production expectations for the months ahead deteriorated somewhat in the May survey compared to the month prior, while current overall order books improved slightly. Chemicals industry confidence remains below the long-term average.