In late October, a monthly report released by the European Chemical Industry Council (Cefic) showed that EU chemical production increased by 1.2% in August compared with July. Although this growth "exceeded expectations", it was still 5.9% lower than in August 2022.
  Cefic said that in the first eight months, EU chemical production fell by 11.2% compared to the same period in 2022, as the spillover effects of the 2022 energy crisis are severely affecting most industries in Europe in 2023. Although European natural gas prices have dropped significantly, they are still 60% higher than the 2015 - 2019 average.
  The latest analysis shows that Poland, the Netherlands and Germany are the EU countries most affected by the energy crisis. In the first eight months, their chemical production fell by more than 14%, with Poland falling by 18%.
  In addition, in the first eight months, output in the EU's basic chemical industry showed a double-digit decline. Among them, petrochemical output decreased by 16.6% year-on-year, polymer output decreased by 14.7% year-on-year, and basic inorganic output decreased by 9.6%. Cefic said the decline in specialty chemical production was relatively moderate, at 7.1%. Consumer chemicals such as soaps, detergents and cosmetics still perform well compared to other chemicals sectors.
  Cefic data also showed that in the first eight months, the EU chemical industry's capacity utilization rate averaged 74%, similar to the level during the COVID-19 epidemic in 2020; sales fell 14.9% year-on-year, indicating that chemical companies 'revenue situation continues to be difficult.
  Relevant sources pointed out that the EU chemical industry has always been an export-oriented industry, with 30% of its output being exported. Reduced trade and weak global demand in key downstream industries, coupled with high energy and regulatory costs, will continue to affect the industry into 2024. Source: Sinochem New Network