The German chemical industry is not moving forward, given the sluggish global economy. In the second quarter of this year, production, prices and sales declined in Germany's third largest industry, according to the German Chemical Industry Association, VCI on Tuesday. “There is going to be no dynamism in the chemical industry even in the second half of the year”, said VCI President Marijn Dekkers.
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"Sustainable growth impulses are recognisable both in Germany and abroad." The sector was also burdened by the weak growth of the emerging countries and the foreseeable exit of Britain from the EU. For 2016, the VCI still expects a decline in sales of 1.5 percent to around 186 billion euros. Production is expected to increase by 0.5 percent, prices are expected to decline by two percent.
In the second quarter, prices for chemical products fell by 2.7 percent compared to the same period last year. However, the price pressure increased during the quarter due to the higher oil price; higher raw material costs could not be passed on quickly by the base chemical manufacturers to customers. Chemicals production fell by 0.5 percent, industry sales shrank within a year by 6.1 percent. Many industrial customers decided to postpone their orders. While the export business still was supporting the chemical industry in the same period last year, foreign trade is now as weak as that with domestic customers.
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