Chemicals production in the European Union contracted 2.1% year-on-year in the first quarter, industry body Cefic said in its latest Chemicals Trends Report Friday.
Monthly production data for March showed a 2.8% drop compared with March 2012. Prices for chemicals in the EU increased 0.5% year-on-year in March. The lower overall monthly production was also affected by lower output in petrochemicals, which fell 3.4%. Polymers and consumer chemicals production fell 1.6% and 1.0% respectively on a year-on-year basis.
Meanwhile, chemicals prices in the EU rose by 0.5% year-on-year in March with chemicals producer prices recording a 1.4% increase. Higher plastics prices contributed to the overall rise in the producer price index, Cefic said.
Industry sources said the lower chemical output was symptomatic of the weak demand in Europe, while the rise in overall prices was an indication that producers' efforts to claw back production margins were bearing fruit.
