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%
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