Sep 7, 2017 - above-average capacity utilisation of chemical plants for the second time ... CAPACITY UTILIZATION IN THE
Quarterly Report
September 7, 2017
The business situation of the German chemical industry in the 2nd quarter 2017 Executive Summary
Major sales increase in the 2nd quarter 2017 Overall, the chemical-pharmaceutical industry can look back on a positive 2nd quarter 2017, according to the latest quarterly report by the German chemical industry association Verband der Chemischen Industrie e. V. (VCI). Sales in Germany’s third largest industry increased considerably, mainly thanks to rising prices. At 86.9 percent, there was a high, above-average capacity utilisation of chemical plants for the second time in a row. Domestic business developed positively, inter alia, because of the good situation of the building industry. Foreign sales were even more dynamic. Especially in Europe – the industry’s most important market – the demand for chemicals and pharmaceuticals “made in Germany” remained strong. The demand from Asia, too, grew significantly in the period under review. VCI President Kurt Bock on the economic situation of the chemical and pharma industry in Germany: “Chances are good for favourable business of German chemical and pharmaceutical companies also in the 2nd half 2017. The situation is becoming more friendly in Europe: Industry is on the upswing, resulting in a higher demand for chemicals. The upswing trend continues also in Germany.“
PRODUCTION
In the 2nd quarter 2017, chemical production fell by 1.5 percent against the previous three months. That was due to a setback in pharma business in Germany and in the USA. Excluding pharma, there was production growth in the quarterly comparison. Production increased across all sectors by 1.6 percent against the previous year. PRODUCER PRICES
In the period under review, the prices for chemical products went up for the 4th consecutive time. They rose by 0.9 percent compared with the previous quarter and by 4.1 percent in the annual comparison. SALES
Chemical industry sales were once more on the up in the 2nd quarter 2017. In a comparison with the previous quarter, they climbed by 1.6 percent to 46.9 billion euros. There was an increase by 7.1 percent against the previous year. Business improved both at home and abroad. EMPLOYMENT
FORECAST
The VCI maintains its forecast of a chemical production increase by 1.5 percent in the year 2017. With chemical prices climbing considerably by 3.5 percent, the industry’s sales can rise by 5.0 percent to 193.9 billion euros.
CAPACITY UTILIZATION IN THE CHEMICAL INDUSTRY in percent
change in percent compared
excluding pharma
to previous quarter
to previous year
– 1.5
+ 1.6
+ 0.1
+ 1.5
producer prices
+ 0.9
+ 4.1
total sales
+ 1.6
+ 7.1
domestic sales
+ 0.5
+ 4.8
foreign sales
+ 2.2
+ 8.5
Sources: Destatis, VCI
95
Capacity utilisation Standard capacity utilization
86.9
CHEMICAL BUSINESS INDICATORS IN GERMANY 2nd quarter 2017
production
In the 2nd quarter 2017, the number of jobs in the industry remained constant at a high level, compared with the previous quarter. At present, the industry has 449,300 staff, reflecting an increase by 0.5 percent over the previous year.
85
75
2013
2014
2015
2016
2017
Sources: ifo, VCI
1
