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German chemical industry raises outlook for sales, producer prices in 2012

By HEIDE OBERHAUSER-ASLAN

FRANKFURT -- German chemical industry association VCI on Thursday raised its forecast for producer prices and sales in 2012 due to increased raw material prices.

For 2012, the industry group expects production prices to rise 2%, up from a May estimate of 1%, and sales to rise 2%, also up from 1%.

In the six months ended June 30, chemical production in Germany fell 4% on the year, the association said.

Prices for raw materials rose 3% in the time period, while sales fell 0.5% to 89.2 billion euros ($109.3 billion).

VCI expects production for the year to remain at the level of 2011, it said.

Domestic demand and orders from the US and Asia should help offset weak European demand.


Dow Jones Newswires

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