The August 2024 report on the EU-27 chemical industry highlights a modest recovery, with production growing for the fourth consecutive quarter since Q3-2023. However, output remains below pre-COVID-19 levels due to weak demand and high energy costs.

Energy prices remain a major challenge. As of July 2024, European gas prices are 4.7 times higher than in the USA and 70% above pre-crisis levels (2014-2019), significantly undermining the global competitiveness of EU chemical producers.

Sector demand remains weak, with declining incoming orders reflecting struggles in downstream European industries. External demand has also softened, reducing trade activity across most EU manufacturing sectors.

Capacity utilisation offers mixed signals. While improvements were noted in late 2023 and early 2024, it dipped slightly to 75.2% in Q2-2024, below the long-term average of 81.4%. This indicates suboptimal operational efficiency despite production growth.

Business confidence has waned, with July 2024 surveys showing declining assessments of order books and worsening confidence indicators, which remain below pre-crisis levels.

In summary, the EU-27 chemical industry shows signs of recovery, but high energy costs, weak demand, and declining business confidence hinder a return to pre-pandemic levels. Strategic measures are essential to enhance competitiveness and stimulate growth.