German chemical companies continue to be hit by supply chain issues

Overall business conditions at German chemical companies have deteriorated in recent months, according to a survey of VCI members
.

This deterioration is mainly due to supply chain constraints
.

"We are not short of orders, but bottlenecks in basic products and logistics have worsened
," VCI said
.
Thirty percent of companies reported slight cuts, with 5 percent making what the trade association called "severe cuts
.
"

“Due to supply chain issues, 35% of companies have had to reduce production and 10% have temporarily closed factories
.
However, bottlenecks will affect industry customers first: more than 70% of companies can only delay processing orders, while 39% of companies The order could not be fulfilled at all
," the VCI added
.

The company said it does not expect the situation to ease until the summer of 2022
.

The German Chemical Industry Association forecasts production growth in the country's chemical industry to grow by 1.
5% in 2022 (2.
0% including pharmaceuticals), and assuming a 3.
5% increase in chemical producer prices, turnover will increase by 5%
.

It added that chemical production in 2021 will increase by 4.
5% year-on-year and turnover will increase by 15.
5% to about 220 billion euros, as producer prices have risen by 8.
5%
.

"The underlying rationale for this result is that the industry's industrial customers continue their business recovery process across all continents," the report said
.

German polymer production rebounded from a slump in 2020, rising 15% year-on-year on strong domestic and export demand, VCI data showed
.
Production of petrochemicals rose 3%
.