In 2009, the European chemical industry faced significant challenges, largely driven by the expansion of new petrochemical facilities in the Middle East. The internal economic environment deteriorated sharply, leading to a difficult market climate. During the fourth quarter of 2008, basic chemicals across most European countries experienced a decline of approximately 6 to 7%. While the production of paints and coatings also dropped, the decrease was less severe compared to that of basic chemicals.
Experts from the Chinese Phenolic Resin Network highlighted that the worsening economic conditions, overcapacity in petrochemical production, and uncertainty around oil price trends have kept European chemical companies in a tough market. Petrochemical producers and those manufacturing bulk products were hit the hardest. Moncef Hadhri, chief economist at the European Chemicals Council, noted that 2008 marked the first decline in European chemical production since 2003. Except for a relatively strong first quarter, the industry's performance worsened significantly over the following three quarters.
The spread of the financial crisis into the real economy accelerated declines in key downstream markets for chemicals, such as construction, automotive, machinery, and equipment manufacturing. As a result, the European chemical sector found itself increasingly unstable. Hadhri emphasized that the era of rapid global economic growth had ended, and the world was now grappling with the worst financial crisis in a decade. Recent economic indicators clearly showed a continued deterioration in global activity and business confidence.
Many analysts observed that from the second half of 2008, volatile raw material prices led consumers to expect further price drops. This caused businesses to prioritize using existing inventory rather than placing new orders, which negatively impacted demand. As a result, chemical manufacturers were forced to temporarily shut down production lines to manage reduced demand. However, prolonged idling of equipment made it harder to restart operations later, and some facilities eventually had to be abandoned.
Moreover, the start of 2009 brought additional pressure as new petrochemical plants in the Middle East began operating one after another, intensifying competition for European producers. This combination of factors made the outlook for the European chemical industry particularly challenging during this period.
Cooling Belt,Cooling Belt Machine,Nut Cooling Machine,Cooling Process Machine
Yantai Maoyuan Food Machinery Manufacturing Co.,Ltd , https://www.peanutmachinery.com