2023 ends on a weak note for the chemicals industry in Europe
Compared to 2022, the European chemicals industry in 2023 produced less, exported less and imported less. Germany is not yet recovering, and full recovery is still way off for most EU27 countries. Two of the main drivers affecting the European chemical industry’s competitive edge are: high energy costs and trade dependency in times of geopolitical disruptions. It will be key to reduce energy costs in Europe and improving strategic partnerships regarding raw material supplies, strengthening our position as component supplier for European value chains and for export markets.
Though confidence in the European chemicals industry is slightly improving, it is still below the long-term average. The weak global demand is not helping the European chemicals companies. The business environment climate is modest and needs strong improvement to come back to the pre-crisis level. The EU27 chemical industry reported its fifth-largest drop in production in 2023 compared to 2022 (-8.0%). The decline in production continues to impact the EU27 chemicals trade flows with the non-EU27 area. EU27 chemicals exports to the rest of the world fell in 2023 by €16 billion compared to 2022. EU27 chemicals imports fell by €46 billion during the same period.
According to the Antwerp Declaration for a European Industrial Deal: “an Open Strategic Autonomy for a competitive and resilient EU is crucial for the transition of Europe in an ever-changing geopolitical landscape. It can however only be achieved if also basic and energy intensive industries remain and invest in Europe. Without a targeted industrial policy, Europe risks becoming dependent even on basic goods and chemicals. Europe cannot afford this to happen”.
By clicking here you can find all the past editions of Cefic Chemical Monthly Report.