07 December 2011 13:00 [Source: ICIS news]
LONDON (ICIS)--Germany’s chemical production is forecast to increase 1.0% year on year in 2012 as growth weakens compared with 2011, the country’s chemical producers’ trade group, Verband der Chemischen Industrie (VCI), said on Wednesday.
In 2011, ?xml:namespace>
“It is difficult to make an accurate forecast for the coming 12 months,” said Klaus Engel, the president of VCI and CEO of specialty chemicals major Evonik.
Engel pointed to the unresolved government debt crises in the eurozone and the
VCI hopes a planned summit of EU leaders in
Meanwhile, Germany-based chemicals producers are facing additional uncertainties from rising electricity costs because of the country’s renewable energy law, the Erneuerbare-Energien-Gesetz (EEG), and emissions trading.
In 2011 alone, the chemical industry’s costs from the EEG and related legislation added up to €1.3bn ($1.7bn), Engel said.
A further challenge is
Engel said that, over the winter months,
Nevertheless, Engel said he would not suggest there was a “crisis mood” in the chemical industry.
Companies’ assessment of their overall business situation was on a level with the strong years of 2006 and 2007, he added.
“There are no recognisable signs in the real economy, that would, from our perspective, justify a crisis scenario,” said Engel.
As for sales and prices in 2012, VCI expects prices to rise 1.0% in 2012 and sales to increase 2.0%, he said.
VCI said naphtha prices should “remain largely stable” in 2012, given the moderate growth forecasts for the global economy in coming months.
The group expects oil prices to range between $100/bbl and $120/bbl in 2012.
($1 = €0.75)
Read Paul Hodges’ Chemicals and the Economy Blog
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections