September 5, 2025 14:32

The European chemical industry is sliding deeper into crisis. Cefic’s half-year report (Chemical Trends Report) shows EU27 chemical output falling 2.4% in the first half of 2025, compared with a 1% gain for overall manufacturing. Production remains almost 10% below pre-crisis levels, and capacity utilisation rate has sunk to 74.6%.

Having previously forecast modest growth of 0.5% for the full year, Cefic now expects contraction, citing weak demand, energy prices that remain far higher than global competitors and a fragile trade environment. U.S. tariffs and geopolitical uncertainties have further clouded the outlook.

Petrochemicals and base chemicals remain under particular strain as China consolidates its global lead with low-cost, large-scale operations. Compared to the U.S., Europe’s energy handicap is stark: gas prices were triple American levels in the first half of the year.

Financial indicators underline the malaise. Even with stable chemical prices, turnover fell 1.8%. The EU27 trade surplus in chemicals slid 17% to €20.1 billion, driven by a surge in imports. National figures vary, with the Netherlands (-6.8%), France (-5.2%) and Germany (-2.7%) under pressure, while Spain and Italy saw smaller declines, and Belgium achieved modest growth at 2.4%.

By contrast, global chemical output remains in positive territory, rising 4.2% in the first half of 2025 after a 4.8% gain in 2024. China expanded 8%, while the U.S. and Brazil also posted growth, at 2.6% and 4.3%.

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