Sober year for German chemicals

A turbulent business year in 2015 ended with sober realities for the German chemical-pharmaceutical industry, according to the latest quarterly report by the German chemical industry association Verband der Chemischen Industrie (VCI).

All indicators of importance to the industry pointed downward at the end of the year; this held true for chemical production, producer prices and sales. Chemical business at home in Germany was adversely affected by the weak domestic demand, while weaker dynamics in China and in the USA made themselves felt in foreign trade. By contrast, in Europe – the most important market outside Germany – the chemical industry saw a minor plus.

For 2016 the VCI forecasts an increase in chemical production by 1 percent. Chemical prices are projected to drop by 0.5 percent. Thus, in the current year chemical industry sales could rise slightly by 0.5 percent to €191 billion.