Belgium Overtakes Germany as Second-Largest Biodiesel Exporter Worldwide

December 7th, 2021 IndexBox Leave a comment

IndexBox has just published a new report: ‘World – Biodiesel – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

This year, Belgium is overtaking Germany to emerge as the second-largest biodiesel exporter in the world. From January to July 2021, Belgium supplied biodiesel worth $2.1B abroad, while Germany’s exports were estimated at $1.8B. The Netherlands keeps the leading position with a biodiesel export value of $4.2B. In 2020, Germany ($2.3B) followed the Netherlands ($4.6B) in global export ranking, while Belgium ($1.5B) took third place. The average biodiesel export price grew by +11% y-o-y to $979 per tonne in 2020.

Global Biodiesel Exports by Country

Over the period from January to July 2021, the Netherlands remains the top biodiesel exporter worldwide, with a $4.2B value of the shipments abroad. Belgium ($2.1B) took second place in the global export ranking, followed by Germany ($1.8B).

In 2020, the amount of biodiesel exported worldwide amounted to 16M tonnes. In value terms, biodiesel exports were estimated at $15.9B (IndexBox estimates).

Last year, the Netherlands (4.7M tonnes), distantly followed by Germany (2.3M tonnes), Belgium (1.6M tonnes), Spain (1.5M tonnes), and China (0.9M tonnes) were the significant biodiesel exporters, together creating 70% of total exports. The following exporters – Argentina (597K tonnes), France (557K tonnes), Italy (494K tonnes), the U.S. (476K tonnes), Malaysia (402K tonnes), Canada (397K tonnes), Poland (365K tonnes) and Austria (289K tonnes) – together made up 23% of total exports.

In value terms, the Netherlands ($4.6B), Germany ($2.3B) and Belgium ($1.5B) constituted the countries with the highest levels of exports in 2020, with a combined 55% share of global exports. These countries were followed by Spain, China, Italy, France, Argentina, the U.S., Canada, Malaysia, Austria and Poland, which accounted for 38%.

Italy saw the highest growth rate of the value of exports in 2020, while shipments for the other global leaders experienced more modest paces of growth. The value of biodiesel exported from Italy rose from $719M to $1.1B.

The average biodiesel export price stood at $979 per tonne in 2020, rising by +11% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Italy ($1,289 per tonne), while Argentina ($784 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Italy, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

Archives, Global Trade Daily, Imports/Exports

European Exports of Household and Sanitary Paper Articles Grow Moderately to Near $6B

August 17th, 2021 IndexBox Leave a comment

IndexBox has just published a new report: ‘EU – Household And Sanitary Articles of Paper – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

In 2020, European exports of household and sanitary paper articles rose by +1.1% y-o-y to 2.9M tonnes, which equated to $5.9B. Supplies from Germany, Italy, Poland and France constitute more than half of total European exports. Germany remains the second-largest exporter of household and sanitary paper articles worldwide and the prime supplier to other European countries. In 2020, the average export price for household and sanitary paper articles in the EU remained almost unchanged compared to the previous year’s figures.

Exports in the EU by Country

In 2020, approx. 2.9M tonnes of household and sanitary articles of paper were exported in the EU; rising by +1.1% y-o-y. In value terms, exports of household and sanitary articles of paper stood at $5.9B (IndexBox estimates) in 2020.

The shipments of the four major exporters of household and sanitary articles of paper, namely Germany, Italy, Poland and France, represented more than half of total export. Sweden (188K tonnes) took the next position in the ranking, followed by Spain (145K tonnes) and the Netherlands (139K tonnes). All these countries together occupied near 16% share of total exports. Belgium (118K tonnes), Slovakia (114K tonnes), Portugal (111K tonnes), Austria (93K tonnes), Slovenia (49K tonnes) and Finland (45K tonnes) occupied a relatively small share of total exports.

Germany holds the position of the second-largest exporter of household and sanitary paper articles worldwide, following China. Germany accounts for 13% of the total global exports.

In value terms, the largest household and sanitary articles of paper supplying countries in the EU were Germany ($1.3B), Italy ($946M) and Poland ($595M), together accounting for 48% of total exports. These countries were followed by France, Sweden, the Netherlands, Spain, Belgium, Portugal, Slovakia, Austria, Finland and Slovenia, which together accounted for a further 45%.

The export price for household and sanitary articles of paper in the EU stood at $2,009 per tonne in 2020, approximately equating the previous year. There were significant differences in the average prices amongst the major exporting countries. In 2020, the country with the highest price was the Netherlands ($2,611 per tonne), while Poland ($1,632 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Finland, while the other leaders experienced more modest paces of growth.

Major Destinations for Household and Sanitary Paper Article Exports from Germany

The Netherlands (109K tonnes), France (64K tonnes) and Austria (64K tonnes) were the main destinations of exports of household and sanitary articles of paper from Germany, together accounting for 40% of total exports. These countries were followed by Belgium, Switzerland, the UK, Poland, Sweden, Denmark, the Czech Republic, Hungary, Italy and Spain, which together accounted for a further 46%.

In value terms, the largest markets for household and sanitary articles of paper exported from Germany were the Netherlands ($204M), Austria ($147M) and Switzerland ($129M), together comprising 37% of total exports. These countries were followed by France, Belgium, the UK, Sweden, Poland, Denmark, the Czech Republic, Italy, Hungary and Spain, which together accounted for a further 45%.

Source: IndexBox Platform

Archives, EU Trade, Global Trade Daily

Economic Recovery in Germany Marked with Fierce Rise in Inflation and a Stronger Green Transition

July 6th, 2021 Theo Smid, Senior Economist for Atradius Leave a comment

When examining a recovery for the German economy as the world rebounds from the events of 2020, it’s important to realize that many sectors will continue to struggle throughout this year. Although the response from the government was fast and strong at the start of the pandemic, three main challenges remain top of mind for Germany this year throughout the recovery process as businesses adapt to a withdrawal of government support and the economy reopens. Many of them took up debt last year and are more vulnerable than before the start of the pandemic. In addition, supply bottlenecks across several sectors will affect exports, and lastly, they will face rising inflation, which is forecast to rise to 4% later this year.

At the onset of the pandemic, the German government provided an immediate response to support businesses, which led to a sense of stability for most of 2020 and the beginning of 2021. Now, as vaccinations progress and cases go down, the government will evaluate its existing stimulus measures and begin to pull back on fiscal support. The German government’s generous support has already provided for approximately $400 billion in direct support (11% of GDP), higher than most countries in Western Europe. Much of what happens next will be decided during the September parliamentary elections but in the meantime, businesses are preparing to say goodbye to the generous financial aid provided.

One government support staying in place is the suspension of the Debt Brake Rule. This rule – which limits the federal deficit to 0.35% of economic output per year, by adding an investment rule to secure enough public money for climate protection, infrastructure, health care and education– has recently been officially suspended for 2022. Not only does this temporary suspension this rule ease the burden on German businesses and the wider economy, but helps transatlantic relations with the U.S., which has been running a trade deficit with Germany. The suspension of the rule has and will continue to help with the U. S’s high current account deficit with Germany, however, it is only predicted to be suspended through 2022.

Businesses globally are struggling with some of the worst supply chain issues to date. This is hitting German sectors particularly hard, as there is a national shortage of shipping containers and semiconductor chips. Supply chain issues are expected to be mainly short-term for the manufacturing industry, especially the automotive industry, and opportunity lies ahead in the medium-to-long term as demand grows for German exports in China and the U.S. The need to spend more on sustainability is the broad consensus among the German population and the main political parties and it is predicted the green party will be a strong contender in the September election. Demand for electric cars is growing, and the Germany car industry was able to play into this trend pretty well, helped by their strong financial position.

There are business opportunities in Germany for companies providing products or services for digitalization and sustainability, as Germany is striving to catch up in the digitalization process.

In general, the German economy is in good shape. While many businesses adapt as the stimulus pulls back, a few sectors will be struggling – such as textile and retail, where margins were already thin prior to the pandemic. The metal and steel industries are generally in good condition, with some upset from strong competition and small profit margins.

Keeping in mind that despite stimulus and support, businesses operating in Germany will have to protect their trade receivables in anticipation of the economic changes this year will bring.

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Theo Smid is a Senior Economist for Atradius based in the Netherlands.

Archives, Global Trade Daily, Imports/Exports

Belgium Increased Polypropylene Supplies to Germany

May 27th, 2020 IndexBox Leave a comment

IndexBox has just published a new report: ‘Belgium – Polypropylene In Primary Forms – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the polypropylene market in Belgium amounted to $1.8B in 2018, jumping by 8.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

Production in Belgium

In 2018, the amount of polypropylene in primary forms produced in Belgium amounted to 1.7M tonnes, stabilizing at the previous year. The total output volume increased at an average annual rate of +1.0% from 2012 to 2018; the trend pattern remained relatively stable, with somewhat noticeable fluctuations over the period under review. The growth pace was the most rapid in 2015 with an increase of 6.1% against the previous year. In that year, polypropylene production reached its peak volume of 1.7M tonnes; afterwards, it flattened through to 2018.

Exports from Belgium

Polypropylene exports from Belgium amounted to 1.1M tonnes in 2018, standing approx. at the previous year. Overall, polypropylene exports, however, continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 when exports increased by 7.7% year-to-year. Exports peaked at 1.1M tonnes in 2013; afterwards, it flattened through to 2018.

In value terms, polypropylene exports amounted to $1.8B (IndexBox estimates) in 2018.

Exports by Country

Germany (288K tonnes) was the main destination for polypropylene exports from Belgium, with a 27% share of total exports. Moreover, polypropylene exports to Germany exceeded the volume sent to the second major destination, the Netherlands (99K tonnes), threefold. The third position in this ranking was occupied by Italy (98K tonnes), with a 9% share.

From 2012 to 2018, the average annual growth rate of volume to Germany stood at +2.3%. Exports to the other major destinations recorded the following average annual rates of growth: the Netherlands (-1.6% per year) and Italy (-3.1% per year).

In value terms, Germany ($491M) remains the key foreign market for polypropylene exports from Belgium, comprising 28% of total polypropylene exports. The second position in the ranking was occupied by France ($163M), with a 9.3% share of total exports. It was followed by Italy, with a 8.3% share.

Export Prices by Country

The average polypropylene export price stood at $1,618 per tonne in 2018, jumping by 14% against the previous year. Average prices varied somewhat for the major foreign markets. In 2018, the countries with the highest prices were the Czech Republic ($1,876 per tonne) and Spain ($1,826 per tonne), while the average price for exports to Poland ($1,413 per tonne) and the Netherlands ($1,474 per tonne) were amongst the lowest.

From 2012 to 2018, the most notable rate of growth in terms of prices was recorded for supplies to the Czech Republic, while the prices for the other major destinations experienced a decline.

Imports into Belgium

In 2018, the imports of polypropylene in primary forms into Belgium totaled 707K tonnes, going down by -5.2% against the previous year. In general, polypropylene imports, however, continue to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 when imports increased by 13% year-to-year. Over the period under review, polypropylene imports attained their maximum at 746K tonnes in 2017, and then declined slightly in the following year.

In value terms, polypropylene imports stood at $966M (IndexBox estimates) in 2018.

Imports by Country

France (145K tonnes), the UK (124K tonnes) and the Netherlands (100K tonnes) were the main suppliers of polypropylene imports to Belgium, with a combined 52% share of total imports. Germany, Saudi Arabia, Brazil, South Korea, Russia, Finland, Austria and the U.S. lagged somewhat behind, together accounting for a further 38%.

From 2012 to 2018, the most notable rate of growth in terms of imports, amongst the main suppliers, was attained by Finland, while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest polypropylene suppliers to Belgium were France ($227M), the UK ($131M) and the Netherlands ($130M), with a combined 50% share of total imports. These countries were followed by Germany, Saudi Arabia, South Korea, Brazil, Austria, Russia, Finland and the U.S., which together accounted for a further 39%.

Import Prices by Country

The average polypropylene import price stood at $1,366 per tonne in 2018, jumping by 18% against the previous year.

There were significant differences in the average prices amongst the major supplying countries. In 2018, the country with the highest price was Austria ($1,647 per tonne), while the price for the UK ($1,049 per tonne) was amongst the lowest.

From 2012 to 2018, the most notable rate of growth in terms of prices was attained by the U.S., while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, International Trade

Trade Protectionism Won’t Help Fight COVID-19

May 6th, 2020 Marc L. Busch Leave a comment

Countries around the world are limiting international trade and turning inward, seeking to produce nearly everything — especially medical supplies — themselves.

The Trump administration, for instance, is considering a “Buy American” executive order that would require federal agencies to purchase domestically made masks, ventilators, and medicines. And over two dozen countries — including France, Germany, South Korea, and Taiwan — have banned domestic companies from exporting medical supplies.

The scramble for self-sufficiency in medical supplies and medicines needed to fight the coronavirus is make-believe. It is neither feasible nor desirable, and will only deepen the pain felt amidst this pandemic.

Governments around the world have responded to COVID-19 by imposing export restrictions on things like ventilators and masks. In mid-April, Syria became the 76th country to follow suit. The import side of things isn’t much better. The World Trade Organization (WTO) reports that tariffs remain stubbornly high on protective medical gear, averaging 11.5 percent across the 164 members of the Geneva-based institution, and peaking at just under 30 percent.

This is no way to fight a pandemic.

It’s not that COVID-19 caused this bout of trade protectionism. It’s just that COVID-19 offers up a useful narrative to promote trade protectionism.

The Trump administration, for instance, has been touting its “Buy American” executive order as a move to spur local manufacturing. Canada has also considered going it alone in ventilators and masks, but recently acknowledged it can’t possibly achieve self-sufficiency in medicines. No one can.

The way many governments see it, the only thing standing in the way of greater self-reliance in medical equipment and medicines is the will to pay for it. The story is that ventilators might be more expensive if made domestically, but that’s the cost of going it alone. It’s only a matter of getting Bauer and Brooks Brothers, for example, to make personal protective equipment, rather than hockey gear and clothing.

But there’s a reason Bauer makes skates instead of surgical masks. It’s better at it, and skates are a much more lucrative business. Bauer didn’t misread the market. It’s heartwarming to hear that Bauer is stepping in to help out, but the company knows that making surgical masks in the US is five times more expensive than making them in China. That’s why 95 percent of the surgical masks in the US are imported.

The absurdity of self-sufficiency in medicines is even more glaring. The US is a major exporter of medicines, but the raw chemicals used to make them are imported. Nearly three-quarters of the facilities that manufacture America’s “active pharmaceutical ingredients” are overseas. To reorient supply chains to produce these ingredients domestically would take up to 10 years and cost $2 billion for each new facility. Consumers would pay at least 30 percent more at the pharmacy.

The last plug for self-sufficiency in medical equipment and medicines is that it’s not a good idea to depend on adversaries to keep us healthy. We don’t. What’s striking about medicines, medical equipment, and personal protective products is that market share is highly concentrated among allies. For example, Germany, the US, and Switzerland supply 35 percent of medical products sold worldwide. True, China leads the top ten list of personal protective products, at 17 percent market share, but the other nine, including the US at number three, are all longstanding allies. To be sure, the untold story of China is that it depends on Germany and the United States for nearly 40 percent of its medical products.

This past week, the WTO and the International Monetary Fund (IMF) called for an end to the folly of trade restrictions during this pandemic. The communique should have — but obviously couldn’t — call out governments around the world for maintaining, on average, a 17 percent tariff on soap. That tariffs on face masks average nearly 10 percent is baffling. That 20 countries in the WTO have no legal ceiling on the tariffs they impose on medicines is unforgivable.

Self-sufficiency in medical supplies and medicines is a political sop. It’s a narrative that can’t deliver anything but misery. If governments want to fight COVID-19, they should spend more time looking at how they’re denying themselves access to medical necessities, and less time on how to deny others the tools to save lives.

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Marc L. Busch is the Karl F. Landegger professor of international business diplomacy at the Edmund A. Walsh School of Foreign Service at Georgetown University and a nonresident senior fellow in the Atlantic Council.

Archives, EU Trade, Global Trade Daily

Frozen Fruit and Nut Market in the EU Grew Slightly to $2.4B

January 17th, 2020 IndexBox Leave a comment

IndexBox has just published a new report: ‘EU – Frozen Fruit And Nuts – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

The revenue of the frozen fruit and nuts market in the European Union amounted to $2.4B in 2018, growing by 1.5% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +1.5% from 2007 to 2018; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. Over the period under review, the frozen fruit and nuts market attained its maximum level in 2018 and is likely to see steady growth in the near future.

Consumption By Country

The country with the largest volume of frozen fruit and nuts consumption was Germany (369K tonnes), comprising approx. 25% of total volume. Moreover, frozen fruit and nuts consumption in Germany exceeded the figures recorded by the second-largest consumer, France (184K tonnes), twofold. The third position in this ranking was occupied by Italy (149K tonnes), with a 10% share.

In Germany, frozen fruit and nuts consumption expanded at an average annual rate of +2.2% over the period from 2007-2018. The remaining consuming countries recorded the following average annual rates of consumption growth: France (+1.8% per year) and Italy (-5.0% per year).

In value terms, Germany ($632M), France ($389M) and Italy ($272M) constituted the countries with the highest levels of market value in 2018, with a combined 54% share of the total market. These countries were followed by Poland, the UK, Belgium, the Netherlands, Sweden, Austria, Spain, Hungary and Romania, which together accounted for a further 37%.

The countries with the highest levels of frozen fruit and nuts per capita consumption in 2018 were Belgium (6,286 kg per 1000 persons), Austria (5,257 kg per 1000 persons) and Germany (4,509 kg per 1000 persons).

Market Forecast 2019-2025 in the EU

Driven by increasing demand for frozen fruit and nuts in the European Union, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.2% for the period from 2018 to 2025, which is projected to bring the market volume to 1.6M tonnes by the end of 2025.

Production in the EU

In 2018, approx. 951K tonnes of frozen fruit and nuts were produced in the European Union; shrinking by -5.9% against the previous year. Overall, frozen fruit and nuts production continues to indicate a relatively flat trend pattern. Over the period under review, frozen fruit and nuts production attained its maximum volume at 1.1M tonnes in 2016; however, from 2017 to 2018, production stood at a somewhat lower figure.

Production By Country

Poland (351K tonnes) remains the largest frozen fruit and nuts producing country in the European Union, comprising approx. 37% of total volume. It was followed by Spain (127K tonnes) and Italy (122K tonnes), with the combined share of 26%.

From 2007 to 2018, the average annual rate of growth in terms of volume in Poland stood at +1.5%. The remaining producing countries recorded the following average annual rates of production growth: Spain (-1.2% per year) and Italy (-5.8% per year).

Exports in the EU

In 2018, the exports of frozen fruit and nuts in the European Union stood at 885K tonnes, rising by 2.6% against the previous year. The total export volume increased at an average annual rate of +2.3% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. In value terms, frozen fruit and nuts exports totaled $1.7B (IndexBox estimates) in 2018.