EU chemicals imports, exports volumes down but trade balance rises in January-July 2023

LONDON (ICIS)–Chemical imports and exports declined in the EU, but the trade balance for the sector grew in January-July year on year, according to the bloc’s statistics agency, Eurostat, on Friday.

Poor demand has loomed large over the sector, particularly in Europe, where high energy costs have left producers struggling to remain competitive, but chemicals exports continued to significantly outpace imports.

In €bn	Jan-July 2023 exports	Jan-July 2022 exports	Growth	Jan-July 2023 imports	Jan-July 2022 imports	Growth	Jan-July 2023 trade balance	Jan-July 2022 trade balance
Chemicals	311.3	319.3	-2.5%	193.9	217.7	-10.9%	117.4	101.6
Manufactured goods	1,230.3	1,169.5	5.2%	1,014.4	1,054.4	-3.8%	215.9	115.1
Machinery and vehicles	594.0	523.8	13.4%	480.8	452.1	6.3%	113.3	71.6
Energy	80.4	103.9	-22.6%	328.1	456.2	-28.1%	-247.7	-352.3
Total	1,492.0	1,450.3	2.9%	1,502.2	1,695.0	-11.4%	-10.2	-244.8

Some specialty segments of the chemicals industry had more resilient demand than more commoditised materials, and the higher margins of these products could have provided some support.

The trend for the sector did not deviate significantly from the previous month, and sentiment remained lacklustre over the summer, while prospects of a swift recovery are unlikely further into the third quarter.

The machinery and vehicles sector had higher imports and a big increase in its trade balance for the seven-month period.

This helped bolster the total balance, leading to a significant erosion of the deficit compared to 2022.

Overall exports for the EU between January and July totalled €1.492bn, an increase of 2.9% compared to the same period a year prior, despite the 3.2% monthly decline, as July exports fell to €205.2bn from €211.9bn.

In contrast, imports fell 11.4% in the first seven months of 2023 to €1,502.2bn, spurred on by the 21.5% monthly decline to €200.3bn from July 2022’s level of €255.3bn.

Throughout the pandemic, pressure on supply chains led to increased discussions about reshoring industrial activity and reducing reliance on international trade lines.

The biggest increase in exports in January-July was to Turkey and sanctions capped business with Russia.

In €bn	Jan-July 2023 exports	Jan-July 2022 exports	Growth	Jan-July 2023 imports	Jan-July 2022 imports	Growth	Jan-July 2023 trade balance	Jan-July 2022 trade balance
US	287.8	287.5	0.1%	201.1	197.7	1.7%	86.7	89.8
China	131.7	131.8	-0.1%	306.5	352.1	-13.0%	-174.7	-220.3
UK	197.3	188.4	4.7%	109.3	122.6	-10.8%	87.9	65.7
Turkey	66.2	55.3	19.7%	56.4	57.8	-2.4%	9.8	-2.4
Russia	23.5	33.9	-30.7%	32.7	138.8	-76.4	-9.2	-105.0

Front page picture shows container ships in the port of Rotterdam (image credit: Hollandse Hoogte/Shutterstock)