New Delhi, Sept. 23 -- Recovery in the European Union's chemicals industry may be pushed into 2027 as weak demand, volatile crude prices, elevated freight costs and excess global supply continue to weigh on production, 360 ONE Capital said in a sector report.

EU27 chemical production fell 1.6 per cent year-on-year in the first half of 2026, following a 2.4 per cent decline in 2025. While capacity utilisation improved to 75 per cent in the third quarter from 73.2 per cent in the first quarter, it remained well below the long-term average of 81.3 per cent.

The report said a near-term recovery does not appear imminent, with crude volatility and higher freight costs causing some demand destruction, particularly in discretionary segments. "W...