Cefic: EU chemical output stagnates as prices fall

Brussels - The European Chemical Industry Council (Cefic) has reported that European chemical output grew by only 0.1 percent during the first two months of 2015 compared to the same period of 2014 and producer prices fell by 6.8 percent.

The Cefic Chemicals Trends Report shows that polymer output declined 1.4 percent in February 2015 compared to February 2014.

European Union chemical output grew by 0.3 percent compared with February 2014, while EU chemical prices dropped 7.3 percent.

This outlook for producers was reflected in a fall in chemicals confidence between March and April this year, with chemical order books and production expectations for the coming months looking worse, said Brussels-based Cefic.

Cefic director General Hubert Mandery said: “Despite a gradual pick-up in the European economy, companies are wrestling with flat demand, falling prices and fierce competition from rivals who benefit from cheaper energy in the US and the Arabian Gulf.” 

The report also showed that petrochemicals output continued downwards in February 2015, with a drop of 2.9 percent compared with February 2014. However, Cefic noted that the drop was partially offset by 4.6 percent growth in the output of speciality chemicals.