Global chemical production edges up but EU output falters

Frankfurt, Germany – Global production of chemicals saw a mild improvement over the first 11 months of 2022, helped particularly by growth in the US, China and India.

During the 11 months to end of November, chemicals production (excluding pharma) fell 4.5% year-on-year in Europe, reflecting a 13.5% decline in November alone.

The decline was sharper in western Europe, which recorded a 5.2% fall in output over the 11 months and a 14.5% fall in November, according to data published by the German chemicals industry association VCI.

Among the main producer countries, Germany reported the steepest decline with a 10.5% reversal during the first 11 months of year and a 20.6% drop in November.

The UK, Italy, Spain and France reported declines of 4.1%, 3.3%, 3.1% and 2.9% respectively over the first 11 months of the year.

Eastern Europe reported an overall decline of 1.7% in production, despite Poland reporting a 10% year-on-year increase over the first 11 months of the year.

Production in Russia fell 3.6% year-on-year for the 11-month period.

The sharp decline in European production was offset by strengthening output in China, the US and India, which reported 6%, 4.4% and 4.6% increases for the first 11 months of the year.

According to VCI, the European chemical industry “was hit hard” in particular by the energy crisis in the region and weak demand.