German chemicals to grow 2.5% in 2008 - VCI

05 March 2008 16:49  [Source: ICIS news]

TORONTO (ICIS news)--German chemical production is projected to grow 2.5% this year, significantly down on 2007's 4.3%, due to the US housing and financial crisis, high raw material costs and a strong euro, the country's industry association said on Wednesday.

 

Pricing was expected to rise 2% in 2008, due to continuing upward pressure from raw material markets, and overall sales by 4.5%, from 2007, Verband der Chemischen Industrie (VCI) said.

 

For the 2007 fourth quarter, German chemical production fell 1.6%, compared with the third quarter. Compared with the 2006 fourth quarter production was up 1.7%, VCI said.

 

Fourth-quarter chemical sales came to €41.6bn ($63bn), down 0.3% from the third quarter on a seasonally adjusted basis. 

 

“The past months did not meet the industry’s expectations,” said VCI president Ulrich Lehner in commenting on the fourth quarter.

 

“Chemical companies had to reduce speed, but even in fourth gear they are going at quite a speed,” he added.

 

While German chemical exports to the US fell in the fourth quarter, demand from Asia – in particular China and India – remained strong.

 

In addition, economies in Latin America, Russia and the Middle East were benefiting from high oil and commodity prices, which translated into higher imports of chemical products, VCI said.

 

“Global chemical markets – with the exception of the US – continue to be in a stable growth phase,” said VCI.

 

($1 = €0.66)

By: Stefan Baumgarten
+1 713 525 2653

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