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Chemicals output grew significantly during the first half of 2017, compared to the same period of 2016, according to the Chemical Trends Report mid-year overview published by the Cefic, the European Chemical Industry Council.

According to information gathered as part of the EU Commission Business Survey, conditions for the chemical sector will become increasingly favourable in the second quarter of 2017 compared to the first quarter of the year.

Total order-book levels of chemicals and employment expectations for the months ahead continued to increase, according to the report, and chemicals business confidence is following an upward trend for the fifth consecutive quarter, sitting above its long-term average.

The figures show that production in the EU chemicals sector grew 3.1% during the first half of 2017, compared to the same period of 2016.

Output rose in most chemicals sub-sectors; production in crop protection, basic inorganics, polymers, dyes and pigments and consumer chemicals increased significantly.

Modest output growth for specialty chemicals was recorded although chemicals output is still (2.1%) below the first quarter of 2008.

Chemicals prices increased as well during the first half of 2017 and were above the previous year’s level.

Producer prices in the EU chemicals sector grew 5.7% compared to the same period of 2016. Most chemicals sectors posted growth on prices during the first half of the year.

Larger production volumes and a positive trend of producer prices brought a clear rise in sales.

Domestic sales developed favourably from January to May and sales revenue generated by EU companies in the EU single market reached 163.6 billion through May.

This represents an additional revenue of 21.4 billion, 15% up year on year. Sales revenue (domestic and exports) posted the value of 219.2 billion during the first five months of 2017, up from 203.1 billion in May 2016, a rise of 8%.

Chemicals consumption in the EU home market developed positively from January to May as well, generating a value of 201.3 billion, up 8.9% year on year.

According to EU Commission Business Survey data, capacity utilisation in the EU chemicals sector reached the value of 84.1% in the second quarter of 2017.

This represents the fifth consecutive quarter of growth since the second quarter of last year. Chemicals capacity is slightly below the first quarter of 2011, which represents the peak level after the global financial crisis.