After a few years of an upward trend, Germany’s 2019 outlook for the chemicals industry is “less optimistic,” thanks to potential global trade issues, uncertainties due to Brexit and a general slowdown of the German economy, according to VCI, Germany’s chemical trade group. The largest chemical producer in Europe, Germany’s chemical industry sales reached €203 billion ($232 billion) in 2018,a first for the nation and a 4.5% jump; however, experts report that the momentum is coming to an end. Although 2018 was a positive year, ultimately many chemicals companies’ production actually declined.

German chemical prices increased 2.0% in 2018, while output grew 2.5%. The increase in output was largely driven by an 11.5% improvement in sales in the pharmaceutical sector. Inorganic basic chemicals’ output fell 2.5%, while output for polymers and petrochemicals decreased 2% each. Soap, detergents, and cleaning or cosmetics manufacturers produced 3% less than in 2017. Fine specialty chemicals output is one of the only categories with increased output, growing 1.5%.

In 2019, production in the German chemical-pharmaceutical industry is expected to rise 1.5%, provided no significant issues affect the industry. Prices and sales for chemicals are forecast to grow 1% and 2.5%, respectively.

Source: ICIS