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The Week in Chemistry: EU chemical production up just 0.5% year-over-year in January-February period as industry faces skyrocketing gas prices, increasing reliance on imports; potential Canadian rail strike threatens sulfuric acid, sulfur shipments to US

LOS ANGELES May 10, 2024 Industry Intelligence Inc. 2 min read

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LOS ANGELES , May 10, 2024 (Industry Intelligence Inc.) –

 

European Chemicals Production

Chemical production in the EU grew by less than 0.5% year-over-year during the first two months of 2024, according to a report released by industry body Cefic.

More broadly, however, output fell by more than 6% between 2022 and 2023 as the industry continues to grapple with gas prices that are 3.9 times higher than those in the US. 

Meanwhile, overall chemical orders have taken a somewhat positive turn, boosting production expectations in March.

The primary source of this information is Cefic.

 

Eurpean Chemical Imports

The European chemical industry shows increasing dependence on imports from countries outside of the bloc, according to an analysis of recent Eurostat data.

The trend is in line with the industry’s input cost struggles, along with significant capacity closures.

Data show that 31% of chemical EU consumption in 2023 was attributable to imports, compared to 22% a decade earlier.

China was the largest contributor in 2023, making up 18.3% of imports coming from outside the EU. The US contributed 16.4%, and the UK 11.3% in terms of value.

The primary source of this information is Cefic.


North American Sulfuric Acid

Sulfuric acid and sulfur market players face potential rail cargo disruptions in Canada related to a proposed strike in May, S&P Global Platts reported on May 9.

A strike would have a major impact on the market, sources say, though some call a strike unlikely, while others expect the government would intervene.

Canada accounted for slightly more than 8% of global sulfuric acid supply in 2023, with nearly all of the country’s production going to the U.S.

The primary source of this information is S&P Global Platts.

 

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