German Chemical VCI Sees Strong Fourth Quarter After Destocking
The German VCI chemical association expects a “strong” fourth quarter as customers refill inventories they had let empty amid turbulence in financial markets and the debt crisis in the U.S. and Europe.
Some customers destocked on the chance of getting better prices, the Frankfurt-based association said in an e-mailed statement today. VCI reiterated a forecast for full-year chemical production to increase about 5 percent and industry sales to rise 10 percent, it said.
“The order situation in the German and European industry is still good,” VCI said in the statement. “Especially the auto and machine-building industries expanded production again. As a result, the chemical industry probably grew in the third quarter, meaning stock rooms must almost depleted.”
Sales dropped 1 percent to 44.5 billion euros ($61 billion) and production fell 2 percent in the third quarter compared with the previous three months, the German association said. Prices gained 0.4 percent, it said.
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