In the fourth quarter of 2022, the VCI recorded a decline of 26.1 percent for polymers. The association also expects a difficult situation in 2023.

 

Across all chemical sectors, but excluding pharmaceuticals, total production by German companies in the fourth quarter of 2022 was almost 24 percent below the previous year's figure, the chief executive of the German Chemical Industry Association (VCI), Dr. Wolfgang Große Entrup, announced. For polymers, the drop was 26.1 percent, and for petrochemicals, 35.8 percent, he said. According to Große Entrup, the reasons for the decline in production are falling demand, severe production cutbacks due to high energy prices and falling producer prices. The companies' plants were operating at only 76.5 percent capacity in the last three months of 2022, he said. This was the lowest level since the financial crisis in 2009, he said, adding that for the year as a whole, production figures were also down overall compared to 2021, with polymers production plummeting by a tenth compared to 2021. Sales increases of 16.6 percent to 265 billion euros for the industry as a whole are mainly due to price increases, according to the VCI. For 2023, the VCI expects sales and chemical production (excluding pharmaceuticals) to shrink further. The chemical industry lacked orders and sales volumes had already fallen by 5 percent, is said. The situation in the chemical and pharmaceutical industry remains difficult. The outlook for the future has brightened somewhat and the situation has eased somewhat as a result of the significant drop in energy and raw material prices in recent months. However, the VCI does not expect a strong recovery. In an international comparison, high energy costs, the lack of orders and location problems would speak against it.

 

Sources:

• Kunststoff Information (March 9, 2023)
• chemie.de (March 13, 2023)
• Photo: © VCI