EU chemicals output shows monthly, yearly decline
European Union (EU) chemicals production recorded a 2.1% decrease in the first five months of 2012 compared with the same period in 2011, according to the latest report from industry trade group Cefic.
Monthly data for May 2012 showed a 0.7% decline compared with May the year prior. May data also showed that the EU chemicals production level remains 4.7% below the peak in 2007.
Polymers production declined in May by 4.5% against the comparable period of a year ago. Specialty chemicals showed a minor decline of 0.3%.
Basic inorganics and petrochemicals were the only two sectors where production increased significantly, up 4.4% and 3.0%, respectively, on a year-on-year basis. Consumer chemicals posted a small increase of 0.2%.
The lower production accompanied weakening confidence in the EU chemicals industry, based mainly on a drop in managers' expectations for the months ahead, Cefic reported, citing the latest EU Commission survey from July 30.
Meanwhile, prices for chemicals in the European Union continued to climb on a year-on-year basis, the group said, up 2.7% during May against the same month in 2011.
The price increase was led again by an overall rate increase in basic inorganics. Prices for petrochemicals also rose by 0.6%.
Latest trade data show the EU chemicals net trade surplus improved through the first four months of 2012 by €2.3 billion compared with the same period of last year, reaching €16 billion.
Capacity utilization decreased in the second quarter of 2012 to 78.3% - in line with the EU industry as a whole during the same period, the group said.
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