EU manufacturing output drops in September
Manufacturing production across the EU fell by more than 6pc on the year in September, the largest drop for any month since June 2020, preliminary data from Eurostat show.
EU output fell by 6.1pc from September 2022, its fifth consecutive year-on-year reduction. It was lower than a year earlier in four out of the five top gas-consuming countries — Germany, the Netherlands, Spain, Italy and France (see year-on-year graph). Only Spain, one of Europe's most resilient economies over the past two years, managed a small increase of 0.6pc on the year. September was the weakest month of German output compared with a 2015 basis since March last year.
Dutch manufacturing output has fallen on the year in every month so far in 2023, but the 10.3pc decline in September was the steepest since April's 12pc. The country's gas-intensive chemicals and refining sectors have consistently struggled this year.
Manufacturing output in almost all EU countries was lower on the year, with output only growing in Spain, Lithuania, Croatia, Sweden and Denmark. The latter two economies have been similarly resilient to Spain — Swedish production has grown on the year in seven out of the last nine months, while Danish output last fell on the year in December 2020.
Output in almost all key gas-intensive sectors was much lower than a year earlier in September. The non-metallic minerals and paper products sectors led the decline for the fourth month in a row, falling by 11.4pc and 10.3pc, respectively (see year-on-year sector table). Motor vehicle manufacturing was up by 3.5pc, the smallest increase for any month since April 2022. The coke and refined petroleum products sector registered a second consecutive year-on-year increase, having declined in every month in January-July.
Output lower on the month
EU manufacturing also ticked down by 0.5pc from August, reversing a recent trend — output rose on the month in four of the past five months, including in August.
Manufacturing output increased on the month in Spain and Italy, but fell in France, Germany and the Netherlands (see month-on-month graph).
Output in almost all gas-intensive sectors fell in September from August, with the exception of chemicals and coke and refined products (see month-on-month sector table). Chemicals, the most gas-intensive industry, registered a 1.3pc increase, a second consecutive month-on-month increase and the third in the past five months. But against a 2015 baseline of 100, EU chemicals output was still only 90.9 in September, the highest since November last year but still well below pre-2022 averages.
EU economy loses momentum
The EU economy has lost momentum and the future trajectory of energy prices remains a concern, the European Commission said today in its Autumn Economic Forecast.
The commission revised down its forecasts for gross domestic product (GDP) growth in the EU and in the eurozone this year, by 0.2 percentage points to 0.6pc. It said inflation, while declining, and the monetary policy put in place to control it, "took a heavier toll than previously expected" this year, and noted that indicators for October point to subdued economic activity in the fourth quarter.
It sees GDP growth in 2024 at 1.3pc for the EU, underpinned by continued easing of inflation rates. But it said the damage caused by elevated energy prices — following the drop in Russian gas supplies — has dented cost-competitiveness and called for "an ambitious policy agenda" to close a gap with other regions.
The highest expected growth rates are concentrated in central and eastern Europe, with many of Europe's larger economies expected to grow much more slowly.
| EU month-on-month sector change | ±% |
| All manufacturing | -0.5 |
| Chemicals and chemical products | 1.3 |
| Non-metallic minerals | -0.5 |
| Food products and beverages | -0.3 |
| Paper and paper products | -0.3 |
| Basic metals | -0.4 |
| Coke and refined petroleum products | 1.9 |
| Motor vehicles and other transport | -1.9 |
| — Eurostat data seasonally and calendar-adjusted | |
| EU year-on-year sector change | ±% |
| All manufacturing | -6.1 |
| Chemicals and chemical products | -3.7 |
| Non-metallic minerals | -11.4 |
| Food products and beverages | -2.0 |
| Paper and paper products | -10.3 |
| Basic metals | -3.9 |
| Coke and refined petroleum products | 3.7 |
| Motor vehicles and other transport | 3.5 |
| — Eurostat data calendar-adjusted but not seasonally | |
Related news posts
Sheinbaum leads in Mexico election to follow AMLO
Sheinbaum leads in Mexico election to follow AMLO
Mexico City, 3 June (Argus) — Ruling party candidate Claudia Sheinbaum was winning Mexico's presidential election by a wide margin today, according to preliminary results, after a race in which she committed to continue President Andres Manuel Lopez Obrador's state-centric energy policies. Sheinbaum with the Morena party was ahead with 59pc of the vote as of 12am ET on Monday after Sunday's election, according to early results from the national electoral institute (INE), based on less than 7pc of the total votes. She was followed by Xochitl Galvez from a right-left (PRI-PAN-PRD) coalition with 29pc, and Jorge Alvarez Maynez from left-centrist Movimiento Ciudadano with 9pc. The former mayor of Mexico City and climate scientist vowed during the campaign to boost renewable energy , but also to keep state-owned companies at the center of the market. Lopez Obrador, known as AMLO, had started rolling back then-recent openings for private-sector energy investment when he took office in 2018. The Morena party began celebrating Sheinbaum's victory, but the opposition had yet to concede the race as of midnight. Sheinbaum's party and allies are also leading the congressional race, according to preliminary results. Sheinbaum's Morena and allies were ahead with around 55pc of the 500 seats in the lower house, with 35pc for the PRI-PAN-PRD coalition and 10pc for Movimiento Ciudadano. Morena and allies also were winning a majortiy of the 128 seats in the upper house with similar figures, preliminary results from the INE show. More detailed results are expected in the coming days, once more than 50pc of the votes are counted. With Sheinbaum at the forefront of polls for months, the Morena party focused on securing majorities in both houses of congress. But the incumbent party could fall short of the 66.67pc of both houses needed to implement broad constitutional reforms. Instead, Sheinbaum is expected to continue with Lopez Obrador's energy sovereignty policies and strengthening oil company Pemex and power utility CFE through financial support rather than eliminating the 2014 energy reform from the constitution. Sheinbaum — who will become Mexico's first female president and the first in North America — has vowed to continue supporting Pemex and CFE, limiting private-sector investment despite the companies' limited financial capacities. She has indicated during the campaign that there will still be no auctions of areas for oil exploration after the Lopez Obrador government halted these. In downstream, Sheinbaum has expressed support for major Pemex's refining projects such as two under-construction cokers and the start-up of the long-delayed 340,000 b/d Olmeca refinery, in line with Lopez Obrador's goal to cut fuel imports. Mexico's government poured around $4bn into maintenance alone at Pemex's aging refineries during the Lopez Obrador administration, in addition to $6bn-$8bn for the uncompleted cokers and a spiraling $16bn-$20bn for the Olmeca refinery. Pemex's refining system increased its crude processing by 53pc to 975,500 b/d in January-April, up from 639,000 b/d in the same period of 2018 prior to the start of Lopez Obrador's administration. Mexico also held governor elections in nine states, including Mexico City, but the preliminary results were not yet available. The country experienced its largest election with nearly 20,000 posts up for election, but also its most violent in modern times with 30 candidates killed. The next president will take office on 1 October for six years and the new congress will be sworn in on 1 August. By Antonio Gozain Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Queensland bans CCS in Great Artesian Basin
Australia’s Queensland bans CCS in Great Artesian Basin
Sydney, 31 May (Argus) — Australia's Queensland state government announced today it will ban carbon capture and storage (CCS) in its portion of the Great Artesian Basin. Greenhouse gas (GHG) storage activities, including CCS projects, will be permanently prohibited in the basin as the government looks to protect its water resources, Queensland premier Steven Miles said on 31 May. The ban, which will be legislated, also includes enhanced oil or petroleum recovery activities that use a greenhouse gas stream. Activities involving GHG storage or the injection of GHG streams into underground formations may be able to continue in other parts of the state, subject to existing assessment and approval processes. The government will appoint an expert panel to review projects outside the Great Artesian Basin, which will report back in 2025. The Great Artesian Basin is Australia's largest groundwater aquifer. It is made up of several sedimentary basins spanning over 1.7mn m² across Queensland, the Northern Territory, South Australia and New South Wales. Water extracted from the basin is used for agriculture, irrigation and stock watering, as well as for industry and household supply in over 80 Queensland towns, according to the government. Queensland's Department of Environment, Science and Innovation last week rejected the environmental impact statement for commodities producer and trading firm Glencore's CTSCo Surat Basin CCS project, which aimed to demonstrate carbon capture from a coal-fired power station and the permanent storage of CO2. The project was unsuitable to proceed because of the potential impact on groundwater resources in the Great Artesian Basin, the department said. The CCS ban follows the state's decision late last year to ban unconventional oil and gas extraction in its portion of the Lake Eyre basin to protect inland waterways, as well as conventional production alongside rivers and on floodplains. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Trump found guilty in criminal 'hush money' case
Trump found guilty in criminal 'hush money' case
Washington, 30 May (Argus) — Former president Donald Trump was found guilty today on 34 felony counts of falsifying business records in relation to the reimbursement of a $130,000 payment to an adult film star ahead of the 2016 presidential election. The unanimous guilty verdict, from a 12-member jury in New York, will inject further uncertainty into the presidential election on 5 November, where Trump is the presumed Republican nominee and is leading in many polls against President Joe Biden. Trump is the first former US president to face a criminal trial, and his conviction means he will run for office — on a campaign focused in part on rolling back energy sector regulations and expanding drilling — as a convicted felon. Sentencing is scheduled for 11 July. Trump has argued the criminal charges, filed by New York state prosecutors, were "ridiculous" and were a politically motivated attempt to interfere with his campaign. At trial, Trump's attorneys argued against the credibility of a key witness, Trump's former attorney Michael Cohen, who testified that Trump directed the falsification of the business records to conceal a "hush money" payment to the adult film star following an alleged affair. "This was a rigged, disgraceful trial," Trump said following the verdict, "but the real verdict is going to be November 5 by the people, and they know what happened here." Despite the conviction, Trump, if elected, could still serve as president. Trump could face up to four years in prison, and sentencing will be decided by the judge overseeing the case. Trump is separately facing dozens of other felony charges in federal and Georgia state court, but those cases have faced delays and may not go to trial before the election. President Joe Biden's campaign said Trump has "always mistakenly believed" he would not face consequences. Biden's campaign said that despite the verdict, it would be up to voters to decide whether Trump is re-elected. "Convicted felon or not, Trump will be the Republican nominee for president," Biden's campaign said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Enagas LNG bunkering sales at record high in 2023
Enagas LNG bunkering sales at record high in 2023
London, 30 May (Argus) — Spanish system operator Enagas' supplies of LNG as a marine bunkering fuel from its terminals in Spain and LNG bunkering vessels (LNGBVs) rose to a record high last year, as more capacity and stronger demand boosted throughput. Enagas supplied about 1.4TWh of LNG as a bunkering fuel in 2023, much more than the 400GWh supplied in 2022 and 300GWh in 2021, according to the firm. Enagas has expanded its LNG bunkering capacity in recent years, while the cost of LNG as a marine fuel has held much lower than competing alternatives such as marine gas oil (MGO) over the past year, supporting demand for LNG bunkering operations. The firm fully owns three LNG import terminals in Spain that offer LNG bunkering services — the Barcelona, Huelva and the Cartagena facilities. Barcelona offers pipe-to-ship (PTS) and ship-to-ship (STS) services, Huelva offers STS services and will soon offer PTS services, while Cartagena offers PTS operations, while Enagas plans to add STS services at the port too, the firm said. Enagas subsidiary Scale Gas co-owns two LNGBVs — the 5,000m³ Haugesund Knutsen in Barcelona with Norwegian firm Knutsen, and the 12,000m³ Levante LNG in Huelva, alongside UK supplier Peninsula. Most of the LNG bunkering operations in Spain are carried out in Barcelona, where bunkering volumes similarly rose to an all-time high last year, according to the port authority. The increase to 143,000 m³ of LNG as a bunker fuel across 199 deliveries last year, more than double the previous record posted in 2021 of 65,051m³, was linked largely to the commissioning of the Haugesund Knutsen in 2023. Enagas partially owns other assets that can offer truck-to-ship operations at the El Musel import terminal and the Sagunto and Bilbao LNG terminals. Bilbao can also provide PTS operations. Spain eyes growth Spain aims to build on its presence in the LNG bunkering market, with several planned LNG bunkering projects adding to its already-large LNG import and storage capacity. Utility Endesa recently advanced plans that were initially announced in 2021 to build a small LNG terminal with 5,000m³ of LNG storage capacity in the Spanish exclave of Melilla in north Africa. Endesa earlier this month requested permits for the project from the local government. Endesa also has plans for an LNG bunkering project in the port of Algeciras, with an LNG plant comprising four tanks with a combined capacity of 4,000m³. The firm had intended to start offering services earlier this year, but this appears to have been delayed. Scale Gas also aims to launch an LNGBV in the Canary Islands that it is building at present and aims to start operating in 2026. This LNGBV will also offer bio-LNG bunkering operations. By Ellie Holbrook Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more