UIC cuts French 2006 chem growth forecast to 1.4%

22 May 2006 15:59  [Source: ICIS news]

LONDON (ICIS news)--Trade group UIC on Monday cut its 2006 volume output growth forecast for the French chemicals industry to 1.4% from an earlier estimate of 2.2%.

The revised forecast, which does not include pharmaceuticals, followed a 1.6% drop in first quarter output from the sector excluding pharmaceuticals.

UIC's earlier 2.2% growth estimate was made only about two months ago.

The first quarter volume dip confirmed the fragility of growth in 2005, when output volumes, excluding pharmaceuticals, expanded by 3%, the UIC said.

Output of organic chemicals rose by 2.1% in the first quarter of this year, UIC said. Its data showed inorganic chemicals output to be 3% lower due largely to the shutdown of a number of production units.

Specialty chemicals volumes remained stable with growth of just 0.1% due, the UIC said, to weakness in a number of market segments and a substantial drop in output of photographic chemicals. Perfumes and toiletries output was up but detergents output fell, the UIC data showed.

The trade group said companies in France were finding it difficult to pass on higher energy and raw material costs in sales prices.

It insisted that competitive electricity prices, stronger innovation, particular in green chemistry, and less constraining regulations "are the first conditions for France to maintain and develop its positions on the world chemical market".

By: Doris Leblond
+44 20 8652 3214

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