BERLIN, Nov 16 (Businesshala) – Germany’s VCI Chemical Industry Association again raised its price and revenue guidance for 2021 on Tuesday, even as growth began to show signs of a slowdown in the third quarter.
The association expects prices to increase by 8.5% by the end of 2021, which is 2 percentage points higher than the August forecast.
Similarly, revenue is now witnessing a growth of 15.5%, from 11% predicted earlier.
The association reaffirmed its full-year chemical production outlook of 4.5% growth.
Strong demand for vaccines, sustained rise in chemical prices and higher orders from industrial customers, especially overseas, helped the industry to post a higher outlook, it said.
However, high energy costs and supply constraints will continue to slow down the business in the coming months, VCI said.
“Neither material shortages or higher energy costs are expected to improve anytime soon. These factors are weighing on the economy and will further chill the chemical business in the coming winter,” VCI head Christian Cullmann said in a statement. said.
Germany is the largest chemical producer in Europe.