Unexpected growth for Germany’s chemical industry

The performance of the German chemical industry was better than expected in the first half of the year and is set to improve further in the second half, according to Verband der Chemischen Industrie (VCI), an industry association. Chemical production in Germany rose 3% in the first half, although sales were down 1% because of a 4% drop in producer prices, VCI says in a press release. Production of basic chemicals grew the most and were up 12%, while production rose 2.0% for consumer chemicals and 1.5% for polymers. VCI expects a 3.5% increase in production and a 1.5% boost in sales for the year. Despite the positive signs, the mood in the industry remains subdued, as domestic business continues to be “disappointing,” VCI says. In addition, production in the first half was still 11% lower than in the same period in 2021, leaving many plants under-utilized and unprofitable. “There is a silver lining, but there can be no talk of a stable upward trend,” VCI president Markus Steilemann says in the press release. “The slight signs of recovery are no reason to celebrate.”