Cefic’s latest Chemical Trends Report is out!

Slight upturn in output in contrast to weak demand and high energy prices

Since the second quarter of 2023, output of the EU27 chemicals industry has started to show a slight upturn. This trend continues in 2024, which is showing a steady but small improvement. Production of the EU27 chemical sector increased for the fourth consecutive quarter since Q3-2023. The EU27 chemical industry seems to have reached its ultimate low in Q2-2023. However, given the lack in demand growth, the European chemical industry production volumes are still far from the pre-Covid levels.

• Energy is still more expensive than before the crisis and not competitive on a global scale. EU gas prices – currently 4.7% higher than the USA – need to decrease, and overall business confidence in the chemical industry needs to improve.
• Demand is weak. Incoming orders decline as downstream industry in Europe remains weak. Considering the weaker external demand , most EU manufacturing sectors are facing decreasing trade activity levels.
• In spite of some improvement earlier this year, at a level of 75.2%, capacity utilisation remains well below the long-term average of 81%

By clicking here you can find all the past editions of Cefic’s Chemical Monthly Report.