Europe chemicals growth lags forecast - report
European Union (EU) chemicals production in July grew by 0.8% compared with July 2010, according to the latest chemicals trends report released by the European Chemical Industry Council (Cefic). However, that figure continues a trend of slower-than-expected growth, the group said.
Production moved back into positive territory in July after output in June had moved slightly into negative territory. The July production figure dragged down further year-to-date output growth, which now stands at 3.0% for the first seven months of the year, well below the 4.5% full-year 2011 forecast by the trade group in late June.
Data showed a near double-digit, year-on-year price increase in July, led by a 15.2% overall price increase in petrochemicals. For the first six months of 2011, the EU chemical sector net trade surplus reached €20.4 billion, off by €3.2 billion when compared with the same period in 2010.
Cefic chief economist Moncef Hadhri said: “The July EU chemical production data show the pace of growth stalling a bit, continuing the trend seen during an unexpectedly moderate second quarter. After an impressive first quarter, the sector appears to have downshifted, in line with EU industrial growth.
“Despite slow growth in June, EU chemicals production levels remain 19.4% higher as compared with the December 2008 trough,” he added.
Here are some of the report's highlights:
Chemicals output rose in July 2011 compared with July 2010
The EU production index for July was up 0.8% compared with July the year prior. Petrochemicals output increased 1.4% in July compared with the year prior, while basic inorganics production rose by 5.1%. Year-on-year consumer chemicals production rose by 5.9% in July; specialty chemicals and polymers output fell by 2.2% and 0.8%, respectively.
EU trade surplus at €20 billion through first six months of year
Trade data show a €20.4 billion trade surplus for the EU chemicals sector in the first six months of 2011, down 13.6% compared with the same period in 2010. The EU-27 posted a €5.4 billion net trade surplus with the NAFTA region from January to June and a €3.3 billion surplus with Asia, excluding Japan and China. The EU sector ran a €1.3 billion net trade deficit with China. The EU net trade surplus with non-EU Europe reached €6 billion.
June sales level increases, remains above pre-crisis peak
June 2011 chemicals sales were 5.6% higher compared with June the year prior. For the first six months of 2011, total sales were 16.9% higher as compared to the same period in 2010. Sales values during first half of 2011 were 5.0% higher compared to the peak level reached in first half 2008.
Prices for basic organics, plastics increase further
Basic inorganics prices pushed upward 14.4% year-on-year during July, and plastics were up 9.1%. The price of consumer chemicals continued to increase modestly, up 3.0% year-on-year for July.
To read the full Cefic report, click here.
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