Eurozone chemical producers indicated lower confidence levels in July as inventory levels rose and production volumes remain far below pre-Covid levels, according to Cefic’s latest monthly report.
EU chemicals trade activity fell by 2.9% in the first half of 2024 compared to the year-earlier period, Cefic, the European Chemical Industry Council, reported on Sept. 5.
High energy prices continue to negatively impact EU producers, according to Cefic.
EU gas prices from January through July were 70% above pre-pandemic levels and 4.7 times higher than U.S. gas prices, leaving the region’s producers at a competitive disadvantage, the report stated.
Output in the second quarter was 1.2% higher than the previous three-month period and 4.3% above the year-earlier period.
Looking ahead, Cefic stated that a strong recovery across the EU chemical sector is unlikely given downward trends among the industry’s downstream users, including the auto, rubber and plastics, construction and computer production industries.
