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EU chemical substances sector output to stay stagnant in 2013, European chemical compounds trade group Cefic says

by admin on December 13, 2012


Brussels, Belgium (PRWEB United kingdom) 7 December 2012

European chemical compounds output will contract by two. per cent in 2012 in comparison with 2011, European chemical compounds group Cefic mentioned right now. A reducing of its forecast released in September, the chemical substances trade physique downgrade reflects modern data displaying a stagnant European economy and a even more decline in chemical compounds output given that the very first quarter of the yr. Cefic forecasts a slight expansion of .five per cent in 2013.

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EU automotive and construction segments have been a drag on chemical substances need in 2012, supplying couple of encouraging signs. Sluggish need remains for new cars as government-backed incentives to substitute cars have now run their program. The fall-out from overcapacity in the development marketplace has however to wind down as the European building sector remains at historically minimal levels.

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Cefic President Dr Kurt Bock said: The existing EU economic downturn is weighing down on the chemical industry in Europe at a time when other planet areas also encounter difficulties.

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EU chemicals manufacturing this yr will most likely stay eight per cent beneath its pre-recession level. The economic predicament In Europe stays uncertain, as austerity programmes made to deal with stubbornly high ranges of sovereign financial debt have led to an uptick in unemployment amounts whilst squashing domestic demand. The European Commission predicts a .three per cent contraction for the EU-27, crawling along in 2013 at just above zero.

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On the product front, volatile oil and naphtha costs have triggered more uncertainty in the petrochemicals sector as clients and producers each attempt to optimise inventory ranges. Buyer merchandise will be the lone chemical substances sub sector in 2012 to escape a fall, although in 2013 the sector, leaving out pharmaceuticals, will once again present a highest-in-class growth of only one. per cent. The stagnant .5 per cent output growth in 2013 for the overall chemical substances sector, excluding pharmaceuticals, is primarily based on an optimistic assumption of modest growth in every quarter after a slowdown in the later on component of 2012.

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Seeking abroad, the United States continues a slow recovery, but is running substantial deficits and faces a fiscal cliff, an automatic policy tightening that threatens to derail its rebound unless of course an substitute can be agreed. Higher economic growth prices in China have slowed somewhat in 2012, due partly to falling Western demand as well as inner factors. Japan has relapsed into contraction as it faces a fall in exports to China, as a end result of a territorial dispute.

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Regardless of less robust abroad economies, export markets will most likely be the only notable supply of development in 2013, particularly from BRIC nations. Anxieties above the euro could resurface as several uncertainties are nevertheless to be resolved. In the extended expression, US shale gasoline and the new chemical capability currently being set up to exploit it, coupled with the related reduction in US energy fees, pose a critical threat to EU chemical substances production.

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Bock concluded: The EU chemicals sector faces escalating uncertainty as the domestic market continues to struggle and overseas competition remains relentless. EU policymakers need to continue to function in direction of putting Europe on much better economic footing to support us move out of this difficult period.

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