03 November 2010 12:47 [Source: ICIS news]
LONDON (ICIS)--Growth in the German chemicals industry slowed in the third quarter as production, prices and sales fell, trade association VCI said on Wednesday.
Demand for chemicals in the domestic market stagnated and even traditionally robust foreign trade showed subdued development, said the VCI.
Production of chemicals in the third quarter rose by 0.5% from the previous three-month period and by 10% from the corresponding period last year.
Production of base chemicals declined by more than 3% compared with the previous quarter.
The strong upward trend for prices did not continue during the third quarter due to weak demand and a slight easing of commodity markets.
Turnover in the German chemicals industry during the third quarter increased 0.5% from the previous quarter to €41.8bn ($58.5bn), while output rates remained unchanged at 85%, said the VCI.
Klaus Engel, the association's president, said the world economy had been developing more slowly, as competition in the chemical markets around the globe was even more intense.
The VCI said it expected only modest growth in the industry for the rest of the year. Because of a strong first half, however, expectations for the full year were unchanged with an 11% increase in chemical production and revenue growth of 18%.
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