Chemical monitor

Production costs in the chemical sector have been fluctuating and were lower recently. In particular, some fuel costs were falling while imported raw materials have also been declining.

During May, the index for fuels and materials declined by 0.3%, having fallen by 0.1% in the previous month. The underlying trend for costs has been subsiding, increasing only 2.4% annually.

In the case of pharmaceuticals, their costs dropped marginally by 0.1% in May having been static in April. On an annual basis these costs have risen by 2% for the pharmaceutical industry. For intermediate products an easier trend has also prevailed, with a drop of 0.2% in May, roughly the same as in April.

The chemical industry benefitted from declining costs for some fuels, especially gas and electricity. These fell by 1.6%, mainly due to seasonal factors, but the price of crude oil has been variable and showed a rise of 13.4%. Imported chemical materials were lower, falling by 0.8% in May. In the case of metals, costs were slightly higher, with an increase of 0.3%.

Selling prices in the chemical industry remained relatively stable and this index showed no change in May. Annually it moved up by only 1.2% for the whole chemical industry.

In some cases, prices increased, especially for pharmaceuticals, with the index rising by 0.7% in May. For intermediate products, prices rose by 0.2%, while the underlying trends remained quite high, averaging 5.7% compared with 12 months ago. Profit margins continue to improve on a short-term basis, though profitability for products remain tight.