Market Monitor - Chemicals performance - UK

Market Monitor

  • United Kingdom
  • Chemicals/Pharma

1st June 2015

Growth in the chemicals sector is forecast to continue in 2015, on the back of UK’s robust economic performance.

Market performance at a glance 

United Kingdom

  • The UK chemicals sector has recorded growth in sales and exports in Q1 of 2015, despite the rather modest performance of the UK manufacturing sector in this period. Growth is forecast to continue in 2015, on the back of robust UK economic performance.
  • While concerns remain in relation to energy and commodity costs, the sector benefits from high entry barriers. Therefore, the majority of chemicals businesses are well established, with stable profit margins and sufficient equity strength, despite high research and development expenditures.
  • Only the petroleum subsector shows some weaknesses, as the market suffers from oversupply, leading to intense price competition while fixed costs are high.
  • The average payment duration in the UK chemicals industry is 90 days. The number of protracted payments, non-payments and insolvency cases is very low, and it is expected that there will be no change in the coming months.
  • Due to the general positive indicators, our underwriting stance for the British chemicals sector is currently relaxed.


Related documents


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.