Factors of European Chemical Production Growth in the Third QuarterSep 19th, 2017
On August 24, Cefic reported a considerable growth of chemical production in the European Union. Despite remaining below the before-the-crisis level, within the six months, the volume of chemical production has grown by 3, 1% in contrast to the same period of last year.
The results were positive in a majority of chemical subsectors and were most sizable in chemical crop protection sector, particularly in the manufacture of polymers, inorganic and care chemicals. A moderate rise was registered in speciality chemicals production.
Larger production volumes together with positive trends in price formation led to the price rise for many chemicals. According to Cefic estimate, prices have grown by 5, 7%. This year the domestic sales at the single EU market show 15 % growth which is more than in the same period in the prior year accounting over $194 billion. A total sales amount within the first five months has increased by 8% which is over $ 260 billion. In addition, the experts point out an 8, 9% increase of consumption at an annualized rate that equals $239 billion.
With the reference to the business survey by The EU commission, Cefic estimates that in Q2 2017 the capacity utilization in the chemical sector grew up to 84%. On the whole, the EU chemical sector has been showing a sustainable growth for the last five quarters. As revealed by the survey, the confidence in the business field is enhancing. In the second quarter, the partnership links and trust between chemical producers improved considerably compared to Q1.