Global chemicals production rises on picks-up in demand

Frankfurt, Germany – Global production of chemicals increased in the first quarter of 2024, due largely to a positive industry trends registered in February.

Combined production of chemicals and pharmaceuticals grew 3.5% globally, reflecting a 6.1% year-on-year increase in chemicals manufacturing and 4.8% decline in the pharma sector.

In particular, February saw a 5.9% year-on-year rise in chemicals production, driven mainly from Asia, but also from Europe, said German chemicals industry association VCI.

Demand for chemicals, the industry body's report noted, “picked up slightly again,” during the quarter ended 31 March.

Among the key contributors were China and Russia as well as eastern Europe, which reported year-on-year production-growth of 7.3%, 9.6% and 8.1% respectively.

Over the first quarter, Europe posted a 1.0% decline in year-on-year production, weighed down by a 2.2% decrease in ‘western Europe.’

Production stagnated in western Europe, as high production costs and low demand by customer industries “remained a challenge,” said VCI.

North America, overall, reported 0.2% growth in production, VCI noting restrained demand for chemicals home and abroad, despite favourable energy prices in the region.

In Asia, Japan and India reported negative developments in production at 0.4% and 2.5% respectively, while South Korea posted a 2.3% growth year-on-year.

The Asian region saw capacity utilisation remaining high, especially in China, VCI added.