German chemical industry sales fall 1% in H1 of ’24

Germany’s chemical industry reported sales of €112 billion ($121 billion) for the first half of 2024, a 1 per cent decrease from last year’s €114 billion, according to industry lobby VCI on Monday.

The sector, Germany’s third-largest, faces cautious sentiment as customers hesitate to place new orders due to ongoing economic uncertainty, high raw material costs, and elevated energy prices.

Despite a 3 per cent rise in industrial production, the chemical industry, including pharmaceuticals, remains 11 per cent below 2021 levels, while producer prices fell by 4 per cent.

Markus Steilemann, VCI president and CEO of Covestro, highlighted that while there are positive signs, the sector is not experiencing a stable upward trend, with major concerns including lack of orders, high energy costs, and bureaucratic hurdles.

VCI, representing around 1,900 chemical companies, maintains its forecast for the year, expecting a 3.5 per cent growth in production volumes and a 1.5 per cent increase in industrial sales. However, Steilemann warned that one in five companies still does not foresee economic recovery in the near future, citing structural disadvantages in Germany as significant burdens.

Attribution: Reuters.