By SHEENAGH MATTHEWS
Germanys VCI chemical trade group said sales and
production this year will be lower than previously
anticipated as industrial customers curb production because
of geopolitical risks.
The chemical industrys sales will probably rise 1% to
192.5 billion euros ($252.7 billion) this year with
production gaining 1.5%, the Frankfurt based VCI said Tuesday
in an e-mailed statement.
The group had earlier predicted a gain in sales of 1.5% and
an increase in production of 2%.
VCI, which represents 1,650 German chemical companies
including BASF and Lanxess, said the industry suffered as
domestic industrial production declined and geopolitical
risks increased client uncertainty in the three months
The German chemical industry had to cope with an
economic setback in the second quarter, Karl-Ludwig
Kley, president of the VCI, said in the statement. We
expect a slight revival in demand in the second half if there
is no escalation of the geopolitical situation.
Chemical selling prices will probably decline 1% this year
instead of a previously-forecast drop of 0.5%, the VCI said.