German chemicals hit longest by supply bottleneck

Ifo, the German institute for the chemical industry, said on Wednesday that supply chain bottlenecks could have the most lasting impact on the German chemical industry
.

Shortages in the chemicals industry are expected to continue to impact production for nearly 10 months, compared with an average backlog of eight months across the manufacturing sector
.

Bottlenecks have eased in October, but only slightly compared to the previous month, with 70.
4% of companies reporting problems with the supply of intermediate goods and raw materials
.

Ifo's head of investigations Klaus Wohlrabe said: "It would be a mistake to call this a relief
.
Especially as businesses expect shortages to continue into the new year
.
"

Shortages were most pronounced in downstream markets of the chemical industry, including the automotive industry and electrical equipment manufacturers
.

The German chemical industry is the largest in Europe; in 2020, its sales, including pharmaceuticals, reached 190 billion euros
.

The petrochemical-intensive automotive industry is a key chemical end market, accounting for around 20% of its production
.

Although conditions have eased in most other industries, producers still plan to raise prices in response to the increase in supply
.