06 November 2013 16:43 [Source: ICIS news]
LONDON (ICIS)--Third-quarter production in Germany’s chemicals industry remained unchanged from the second quarter, while sales fell 1.0% to €44.4bn ($60bn) on lower prices, chemical industry trade group VCI said on Wednesday.
VCI president Karl-Ludwig Kley said that the third-quarter data confirmed that the recovery in the global economy is not yet “sustainably secure.”
“Business in [Germany's] chemical industry was weaker in the third quarter than in the second,” Kley said.
“Also, for the first time this year export sales fell,” he added.
However, VCI maintained its previous forecast of 1.5% year-on-year production growth in 2013 for the industry.
VCI said that the main reason for the third-quarter stagnation in chemical production, relative to the second quarter, was lower demand for pharmaceutical products.
Meanwhile, domestic demand for chemicals in the automobile and construction industries rose in the third quarter, VCI said. However, chemical firms’ export business was weaker than in the second quarter.
Compared with the 2012 third quarter, 2013 third-quarter production was up 1.5% year on year while sales were up 1.0%.
Chemical producer prices fell 1.0% in the third quarter from the second, despite rising raw material costs, the group said. Compared with the 2012 third quarter, prices were down 1.4% year on year.
Frankfurt-based VCI predicted that Germany's 2013 full-year chemical industry sales would be around €187.7bn, up 0.5% year on year from 2012. Prices are forecast to fall 1.0% from 2012.
($1 = €0.74)
Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog
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