Petrotahlil -Chemicals producers selling prices in the eurozone rose more than 3% in April, statistics agency Eurostat said on Wednesday, adding to months of healthy increases.

The increases are in line with rises in inflation in the 19-country currency union, amid booming manufacturing activity those months, with shortages for many materials widespread and order books healthy.

The price increases were generalised across the eurozone, and major producing countries were above 2%, month on month.

In the Netherlands, where the Amsterdam-Rotterdam-Antwerp (ARA) region is a key global petrochemicals hub for petrochemicals trade and production, prices rose more than 6%.

Chemicals producers’ prices in the wider 27-country EU also rose by more 3.0%.

The increases were above average industrial producer prices for the month, which rose by 1% in the eurozone and by 0.9% in the EU, month on month.

The increases also correspond with those in average inflation; after months in 2020 at record lows, and with economists fearing a deflationary period, inflation in the eurozone has picked up speed.

In April, it stood at 1.6%, up from 1.3% in March.

This week, Eurostat said inflation in May had risen further to 2%; the European Central Bank (ECB)’s mandate on inflation is to keep prices below, but close to, 2%.

A YEAR ON FROM LOWS
The sharp year-on-year increases in both chemicals’ producers prices and wider industrial producers’ prices also tell the story of last year's sharp price falls.

During April and May 2020, practically all European countries implemented lockdown measures to stop the spread of the pandemic, depressing economic activity.

Average industrial producers prices rose in April by 7.6%, year on year, in both the eurozone and the  EU.