Market Monitor - Chemicals performance - Spain

Monitor de Mercado

  • Spain
  • Productos químicos/Farmacéutica

01 jun 2015

Since 2000, the Spanish chemicals sector has increased its exports by more than 170 %, demonstrating its competitive edge in the global market.

Spain

  • Increasing exports, but margin remain tight
  • Modest recovery of the pharmaceuticals subsector
  • Payments take 60 days on average

 

 

 

 

The Spanish chemicals sector consists of more than 3,000 companies and generates more than 12% of industrial GDP. During the years of negative economic growth the industry has provedto be relatively resilient, mainly due to its export orientation. The Spanish chemicals sector obtains 57% of revenues from export markets, amounting to EUR 32 billion turnover and 14.7% of the total Spanish industry exports. Since 2000, the sector has increased its exports by more than 170%, demonstrating its competitive edge in the global market.

The Spanish chemicals sector mainly consists of small and medium- sized businesses, with 85% of the companies employing less than 50 people. However, the hydrocarbons subsector is represented by large groups such as Repsol and Cepsa.

According to Feique (the business federation of the Spanish chemicals industry), in 2014 the Spanish chemicals sector recorded moderate turnover growth of 2%, rising to EUR 56,386 million. Exports increased 3.6% following 8.2% growth in 2013. The sector is forecast to grow further in 2015 due to the more positive domestic and international economic environment. Although exports will continue boosting overall sales, it is likely that internal demand will start playing an important role again, given the economic rebound in Spain. That said, many businesses are operating with very tight margins as a result of higher prices for raw materials and growing global competition.

 

 

 

The pharmaceuticals subsector has experienced a gradual recovery since the second quarter of 2013. According to Farmaindustria (the Spanish pharmaceuticals trade association), accumulated public expenditure on pharmaceuticals decreased 30% from 2010 to Q1 of 2013. However, this trend started to slowly revert in Q2 of 2013, with year-on-year growth of 1% between January 2014 and January 2015. The demand side of prescriptions is also increasing moderately. Regarding the payment delays previously suffered by the sector, it is worth mentioning that the Spanish government has taken significant steps in order to mitigate the situation, as well as to rationalise medicine consumption.

Payment behaviour in the chemicals industry depends on company size, sector activity and even the company’s location. On average, payments in the industry take around 60 days: better than most Spanish industries overall, where more than 50% of companies take more than 75 days to pay.

 

 

We have seen no increase in notifications of non-payment and subsequent credit insurance claims in 2014 and in Q1 of 2015. The claims trend in the chemicals industry is better than the Spanish industry average and we expect insolvencies to remain low in 2015. Thanks to its high degree of internationalisation and the improvement of domestic demand, our underwriting approach to the chemicals sector is rather relaxed. However, we are still cautious about poorly rated buyers and those who cannot provide up-to-date financial information or trading experience.

 

Even in the case of subsectors with a generally lower credit quality – for example pharmaceuticals and fuel – we have made every effort to optimize our exposure, seeking the most recent financial information, enabling us to maintain or even increase our credit approval. However, for small and medium-sized companies with high leverage and low margins we pursue a cautious underwriting approach, monitoring that liquid resources and cash generation are sufficient to meet businesses´ financial commitments.

Documentos relacionados

Disclaimer y Buró de Entidades Financieras

Este informe se presenta, con fines de información únicamente y no está pensada como una recomendación en cuanto a las transacciones particulares, inversiones o estrategias en modo alguno a cualquier lector. Los lectores deben tomar sus propias decisiones independientes, comerciales o de cualquier otro tipo, con respecto a la información proporcionada. Aunque hemos hecho todo lo posible para garantizar que la información contenida en este informe sea obtenida de fuentes confiables, Atradius no es responsable por los errores u omisiones, o por los resultados obtenidos del uso de esta información. En ningún caso Atradius, sus corporaciones o empresas relacionadas, afiliadas y subsidiarias, ni los socios, agentes o empleados, serán responsables por cualquier decisión o medida adoptada con base en la información en este informe, o por ningún daño directo, indirecto, especial, incidental o consecuente, resultante del uso de la información de las declaraciones hechas en este documento. BURÓ DE ENTIDADES FINANCIERAS ¿Qué es el Buró de Entidades Financieras? Es una herramienta de consulta y difusión con la que podrás conocer los productos que ofrecen las entidades financieras, sus comisiones y tasas, las reclamaciones de los usuarios, las prácticas no sanas en que incurren, las sanciones administrativas que les han impuesto, las cláusulas abusivas de sus contratos y otra información que resulte relevante para informarte sobre su desempeño. Con el Buró de Entidades Financieras, se logrará saber quién es quién en bancos, seguros, sociedades financieras de objeto múltiple, cajas de ahorro, afores, entre otras entidades. Con ello, podrás comparar y evaluar a las entidades financieras, sus productos y servicios y tendrás mayores elementos para elegir lo que más te convenga. Esta información te será útil para elegir un producto financiero y también para conocer y usar mejor los que ya tienes. Este Buró de Entidades Financieras, es una herramienta que puede contribuir al crecimiento económico del país, al promover la competencia entre las instituciones financieras; que impulsará la transparencia al revelar información a los usuarios sobre el desempeño de éstas y los productos que ofrecen y que va a facilitar un manejo responsable de los productos y servicios financieros al conocer a detalle sus características. Lo anterior, podrá derivar en un mayor bienestar social, porque al conjuntar en un solo espacio tan diversa información del sistema financiero, el usuario tendrá más elementos para optimizar su presupuesto, para mejorar sus finanzas personales, para utilizar correctamente los créditos que fortalecerán su economía y obtener los seguros que la protejan, entre otros aspectos. Puedes consultar la información relativa al Buró de Entidades Financieras, tanto de Atradius Seguros de Crédito. S.A., como de todo el sector asegurador en el siguiente enlace: http://www.buro.gob.mx