Germany’s materials shortage in chemicals worsens in March on Ukraine war

MADRID (ICIS)–More than 70% of chemicals producers in Germany reported a shortage of materials for production in March, sharply higher than February’s 58.4%, on Russia’s invasion of Ukraine, research institute Ifo said on Friday.

For manufacturing companies overall, more than 80% of them reported shortages of intermediate products, raw materials, and logistical woes.

In February, the overall figure for manufacturing companies in the largest eurozone economy was 74.6%.

“The attack on Ukraine has made the situation even worse for many companies. Supply chains now have new problems to cope with on top of the existing ones. For example, 17% of German industrial companies import from Russia,” said Klaus Wohlrabe, head of surveys at Ifo.

More than 90% of Germany’s petrochemicals-intensive industrial sectors like machinery and equipment, electrical equipment, or automotive reported shortages of materials and/or logistical trouble.

“Companies had originally expected the situation to ease in the summer, but any easing will now be delayed further,” concluded Wohlrabe.