14 October 2011 18:50 [Source: ICIS news]
LONDON (ICIS)--German chemical firms are studying “scenarios for a recession” in order to be prepared should the economy decline in the wake of the ongoing financial market turbulence, an economist said on Friday.
Uncertainty is prompting many customers in the chemical sector to keep inventories low, Meincke said. Others are anticipating lower raw material prices and are therefore curbing their orders, he said.
However, Meincke said that a slowdown in demand is not a surprise as such, given that it comes after the strong and rapid recovery from the 2008/2009 crisis.
In fact, most in the industry have so far seen hardly any “concrete signs” of an economic collapse and are still assessing their business situation as “positive”, Meincke said. In parts of the industry, capacities remain constrained and key raw materials are tight, he added.
As for the eurozone debt crisis and the euro, Meincke said the common currency is a “success story” for the continent.
The single European market with a common currency brought significant growth and wealth – to the benefit of
Meincke added that the euro is a stable global currency that will not be brought down if a relatively small eurozone member, such as
Even before the current crisis,
In the past three years,
“In view of
Meincke said that
“That is reason enough [for
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