VCI quarterly report 3/2017 on the business situation of the chemical-pharmaceutical industry in Germany
Strong increase in chemical production
Production growth by 1.3 percent against the previous quarter ++ Drop in chemical prices by 0.7 percent ++Sales rise by 0.4 percent to 46.5 billion euros.
Also in the 3rd quarter 2017 the situation was positive for the chemical-pharmaceutical industry in Germany, according to the latest quarterly report by the German chemical industry association Verband der Chemischen Industrie e. V. (VCI) in Frankfurt. Production improved vigorously during the summer months, leading to higher sales irrespective of falling prices. Capacity utilisation remained at a high level. The good situation of domestic industries generally resulted in favourable business at home for Germany’s third largest sector. This development benefited in particular the manufacturers of fine and specialty chemicals. Foreign business was even better: The demand for chemical products “made in Germany” went up especially in Europe but also in Asia and the USA.
VCI President Kurt Bock on the economic situation of the sector: “2017 can become a good year for the chemical industry in Germany. But this is no guarantee for the time after that. Our companies are expecting the incoming federal government to set a reliable industrial policy course for growth, investment, affordable energy and more support for research and innovation. These are important prerequisites for a successful future.”
For the year 2017 the VCI anticipates chemical production to grow by 2.0 percent. As chemical prices are assumed to rise by 3.0 percent, industry sales should go up by 5.0 percent to ca. 194 billion euros.
In the 3rd quarter 2017, chemical production increased by 1.3 percent against the previous quarter. An increase by 2.9 percent was achieved compared with the previous year. At 85.6 percent, capacity utilisation was above-average for the third consecutive time.
Chemical prices dropped in the period under review. From July to September, chemical products were 0.7 percent less costly than in the previous quarter but still 2.9 percent more expensive than one year earlier.
The industry‘s sales once more improved in the 3rd quarter 2017, rising by 0.4 percent to 46.5 billion euros compared with the previous quarter and even by 6.1 percent against the previous year. Both domestic and foreign business developed positively.
In a comparison with the previous quarter, the number of jobs in the industry remained constant at a high level. With 449,300 staff, there was an employment increase by 0.5 percent over the previous year.
The full version of the VCI’s latest quarterly report (VCI-Quartalsbericht 3/2017, in German language) is available in the download section at the top of this page. Additonally, you will also find there an executive summary of the report in English language and the two main charts of the report as jpg files in high resolution (indicators for 3rd quarter, production development 2013 to 2017 by quarter).
The VCI represents the politico-economic interests of around 1,700 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, science and media.The VCI stands for over 90 percent of the chemical industry in Germany. In 2016 the German chemical industry realised sales of around 185 billion euros and employed over 447,000 staff.