VCI: Global chemical production impacted by declines as major markets

Frankfurt, Germany – Global chemical production for the four months to end of April fell 0.4%, according to German chemicals industry association the VCI.

Europe, including the UK, saw an 11.8% year-on-year decrease for the four-month period, with all major markets posting a decline, VCI reported 29 June.

In particular, Poland, Germany, the UK and Italy saw double-digit losses of 19.9%, 17.7%, 11.3% and 10.1% respectively.

With a decline of 1% over the review period, and a 7.8% year-on-year gain in April, Russia's chemicals industry reported the smallest loss in production.

The industry in Europe, said VCI, faces “high production costs, rising interest rates and a decline in order intakes”.

Customers, it added, have started to reduce production and, in many cases, reduce stock levels instead of buying new chemicals.

In North America, chemicals production fell 2.9% over the first four months of 2023, with a 2.8% drop in US output and a 6.3% decline in Canada.

Latin America also posted a 7.0% decrease in year-on-year production of chemicals, led by Chile which saw a 16.4% decrease in output.

Asia was the only region to report a positive development, posting a 3.5% gain year-on-year.

Production in the region was mixed with Korea and Japan reporting declines of 20.6% and 4.1% during the period.

China and India, on the other hand, posted growth in production levels of 7.5% and 5.4% respectively.

The figures do not represent the pharmaceutical industry, VCI pointed out.