Germany’s chemicals production expected to rise 11% in 2010 - VCI

02 September 2010 11:08  [Source: ICIS news]

LONDON (ICIS)--Germany’s chemicals production is expected to rise by 11% in 2010 compared with last year, while chemicals prices should increase by 2.5%, Verband der Chemischen Industrie (VCI) said on Thursday.

The trade association said industry sales were expected to grow by 18%, driven by strong demand for exports to Asia and South America as well as higher prices.

During the second quarter, chemicals sales rose by 5.2% compared with the previous quarter and 22.7% compared with the same three months of last year to €41.6bn ($53.3bn).

German chemicals production increased by 1.5% compared with the first quarter and by 14.2% from the same year-ago period.

Sales prices were 1.8% higher in the second quarter compared with the previous three-month period and 3.4% above the April to June period in 2009, VCI said.

It added that growth rates would slow during the second half of the year as customers had stocked up on product after a rise in demand.

VCI said it remained to be seen how sustainable the recovery in the German chemicals industry would be in the near future, as so far it had only caught up what it lost during the financial crisis.

Further growth in the German economy was still connected to a number of risk factors, said VCI.

The slowdown in the US, fears of overheating in China and the debt crisis in southern Europe could all be potential threats to the country’s export business, it added.

($1 = €0.78)

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By: Hilde Ovrebekk
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