By SHEENAGH MATTHEWS
German chemical companies are expecting further recovery in
2014 after production growth accelerated in the fourth
quarter of last year, said Utz Tillmann, head of the VCI
German chemical lobby group.
Chemical production rose 2.6% in January year-on-year, after
a 3.7% gain in the fourth quarter, according to Tillmann.
VCI, which represents 1,650 German chemical companies
including BASF and Lanxess, reiterated a full-year forecast
for chemical sales to gain 1.5%, as the industry sells more
for a lower average price. The increase in production at the
end of last year and the beginning of this year looks like a
real recovery in demand and not a sign that customers are
just refilling inventories, Tillmann said.
At the moment, the prospects for 2014 are good for the
industry, Tillmann said at a press conference in
Frankfurt, where the organization is based. The upward
trend from the end of the year is continuing. All segments of
the chemical industry are noticing a revival. We expect
increasing demand for chemicals at home and abroad,
especially from Europe
Chemical production will probably increase 2% with selling
prices dropping 0.5%, leading to the gain of 1.5% in sales to
191.5 billion euros ($265.6 billion), VCI reiterated.
Fourth-quarter sales in Germanys chemical industry rose
3% compared with a year earlier, while selling prices dropped
2.6%, VCI said. The industry employed 436,500 people at the
end of the quarter, 0.5% more than a year earlier.