The tough market conditions experienced by the German chemical industry carried into the third quarter, the result of high energy prices and weakening demand for chemicals across most markets, according to VCI, Germany’s largest chemical industry association.German chemical sales in the quarter fell 1.6% to $62.3 billion from the year-ago period, while production was down 4.2%. At 79.3%, average plant capacity utilization in the third quarter was well below normal, VCI states.“The chemical industry faces more dark months,” VCI President Markus Steilemann warned in a recent report on the state of the German industry. “Many companies are already in an extremely dramatic situation with their production in Germany, mainly because of the massive increase in energy costs.”VCI expects chemical production in Germany for the whole of 2022 to be down 5.5%. Medium-size chemical companies have been struggling the most, it says.
It really doesn't sound like things are getting better in Germany, but I suspect we are in for a difficult winter. Here's hoping we all make it through.