Output fell 10% for Germany’s chemical sector in 2022 and 15.5% for the petrochemicals industry amid high energy prices and ongoing supply chain issues, according to a report by the Independent Commodity Intelligence Services (ICIS).
The industry experienced an 80% drop in profitability year over year, while 40% of players in the sector either cutting or expecting to slash production in the near future, stated ICIS, citing figures by German trade group VCI.
According to ICIS, VCI CEO Markus Steilemann said, “The situation is dramatic. Enormous energy prices and price increases for raw materials and inputs are making matters hard indeed for industry in our country.”
Chemical producers increased prices by approximately 22% during the year to keep pace with higher energy prices and inflation.
Steilemann said that Germany’s energy subsidies have failed to meet the needs of the industry.
“The federal government has failed to ensure the success of the energy price brakes at EU level,” Steilemann said.
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