Germany chemical production picks up, but prices decline: VCI

04 September 2013 15:58  [Source: ICIS news]

LONDON (ICIS)--Germany’s chemical industry production rose by 1.8% in the second quarter from the first, but producer prices fell by 0.6% on the back of lower raw material costs, the country’s chemical industry trade group VCI said in an update on Wednesday.

Compared with the 2012 second quarter, chemical production was up 2.6% year on year while prices fell by 0.9%, VCI said.

The Frankfurt-based group maintained its previous forecast of a 1.5% year-on-year increase in Germany’s chemical production in 2013.

VCI projects Germany’s full-year 2013 chemicals industry sales at €188.7bn ($248.3bn), up by 1.0% from 2012. Producer prices are expected to fall by 0.5% in 2013. Up until now, VCI had assumed that prices would remain unchanged from 2012.

VCI president Karl-Ludwig Kley said that the industry was seeing a number of indications of stronger business in the second half of 2013, driven by robust domestic demand, as well as improved export demand.

“For the first time in two years the eurozone recorded economic growth again,” Kley added.

But he also noted that the chemical industry continues to be exposed to uncertainty from developments in eurozone government debt levels. Another factor contributing to uncertainty is the geopolitical situation in the Middle East, Kley said.

($1 = €0.76)

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog

By: Stefan Baumgarten
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