Chemicals Trends Report - Cefic

Embargoed for release: Wednesday, May 2, 2012, at 12 noon Brussels Time (C.E.S.T.), 11 am London Time (B.S.T.)
Chemicals Trends Report
Monthly summary, April 2012
EU chemicals sector output drops 2.2 per cent through first two months of 2012
February monthly production 2.4 per cent below February 2011 level, data shows
BRUSSELS, May 2, 2012 – EU chemicals production recorded a 2.2 per cent decrease in the first two months of 2012,
according to the latest Cefic Chemicals Trends Report. Monthly data for February 2012 showed a 2.4 per cent decline
compared with February the year prior. February 2012 data show that the EU chemicals production level remains 5.3 per
cent below the peak in 2007.
Prices for chemicals in the European Union increased on a year-on-year basis in February, climbing 4.4 per cent during the
month against the comparable month in 2011. The uptick in prices was led again by the overall price increase in basic
inorganics. Latest trade data show the EU chemicals trade net trade surplus improved in January 2012 by €0.8 billion
compared with January 2011, reaching €4.1 billion.
Cefic Chief Economist Moncef Hadhri said: “EU chemicals production was negatively affected in the first quarter by
continued deterioration in the EU business climate and weak macro-economic activity. The sector’s downward growth
trend is partly the result of financial turbulence stemming from the European debt crisis and the intensifying fiscal
consolidation efforts in most EU member states.”
Year-on-year chemicals output
lower in February, but consumer
chemicals expands
Consumer chemicals was the only
sub-sector to avoid a drop in the
February EU chemicals production
index, up just 0.7 per cent in
February 2012 compared with
February 2011. Basic inorganics
and specialty chemicals production
decreased 5.2 per cent and 4.5 per
cent respectively on a year-on-year
basis in February. Petrochemicals
declined during the month by 3.5
per cent while polymers decreased
by 2.6 per cent against the
comparable period the year prior.
EU trade surplus improved by €0.8
billion in January 2012
Trade data for January 2012
indicate a €4.1 billion overall EU
chemicals net trade surplus. The
EU net trade surplus with the Rest
of Europe contributed significantly
to additional surplus generated in
January, reaching €1.1 billion, up
€0.3 billion compared with January
2011. EU trade with the NAFTA
region resulted in a €1.1 billion net
trade surplus in January 2012 as
compared with January the
previous year. A €0.5 billion surplus
occurred with Asia, excluding Japan
and China – down €0.4 billion
compared with January 2011.
more

EU chemicals sector output drops 2.2 per cent through first two months of 2012…add one
Prices for basic organics climbed by 7.2 per cent in February this year
Year-on-year EU chemicals prices rose in February by 4.4 per cent, driven by the price for basic inorganics, which
increased by 7.2 per cent during the period. Prices climbed for consumer chemicals by 1.9 per cent, while
pharmaceuticals prices edged down by 1.4 per cent in February as compared with the year prior.
EU sales growth in January 2012 up 5.0 per cent from 2008 pre-crisis period
January 2012 EU chemicals sales were 0.2 per cent higher compared with January the year prior. For the whole year
2011, total sales were 10.7 per cent higher as compared with 2010. The overall sales level continues to surpass the
pre-crisis peak reached in the beginning of 2008. Compared to full-year sales levels in 2008, the total value of sales in
January 2012 was 5.0 per cent higher.
Economic sentiment weakens in the EU area (digest)
After improving in January and February,
the Economic Sentiment Indicator (ESI)
decreased in March by 0.8 points in the
European Union to 93.2. The decline was
mainly driven by decreasing confidence in
the industry and construction sectors. By
contrast, confidence increased among
consumers and in the services and retail
trade sectors. Among the largest Member
States, the UK (-2.5) reported the biggest
decrease in sentiment, followed by
Germany (-2.4), the Netherlands (-1.3) and
Spain (-1.1). By contrast, sentiment
improved in Italy (+3.5), Poland (+2.2) and
France (+2.0). The ESI is above its long-term
average only in Germany.
At the EU level, confidence in industry worsened markedly (-1.8). Managers' assessment of their companies' past
production and current level of order books was less positive. The current assessment of stocks of finished products
and export order books was less positive also. However, managers' production expectations remained broadly stable.
Confidence in services improved in the European Union (+0.8), thanks to more positive assessments of the past
business situation and past demand, while demand expectations decreased slightly. Confidence in retail trade also
improved. By contrast, confidence in construction worsened in the European Union (-0.8), mainly due to a worsening
of managers' employment expectations in that sector. Confidence among consumers improved by 1.3 points in the
European Union, mainly on the back of a strong increase in consumers' expectations about the general economic
situation and an easing of unemployment fears. Consumers' assessment of their own financial situation improved
slightly in the euro-area, but remained unchanged in the European Union. Consumers' saving expectations declined in
both areas.
Contact information:
To schedule an interview with Cefic Chief Economist Dr. Moncef Hadhri, contact James Pieper, media relations, Cefic,
on +32 2 676 73 98 or via email at jpi@cefic.be.
For details of the report, e-mail Dr Hadhri directly at mha@cefic.be or call him on +32 2 676 72 82.
Those who are not media or members of Cefic, please contact Cefic Director of Business Development Dr. Fabrice
Tabankia on +32 2 676 72 95 or at fta@cefic.be.
Notes to editor:
About the Chemicals Trends Report
The Cefic Chemicals Trends summary report is a condensed version of a full report, in slide presentation form, is issued each month to members of
Cefic, which includes chemical industry associations and member companies. Both the short summary and full report provide a snapshot of the
chemical industry performance in the 27 countries in the European Union and are based on available data released by Eurostat. The scope of the
two-page summary report distils Eurostat data into four areas: chemicals production, trade, prices and total sales.
About Cefic
Cefic, the European Chemical Industry Council, is the Brussels-based organisation representing the European chemical industry. Created in 1972, it
represents 29,000 companies that produce 21 per cent of the world’s chemicals and employ 1.2 million people. To learn more about Cefic, visit its
website at www.cefic.org.
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