The German chemical industry is currently experiencing an unexpected boom: due to the Iran war, customers are stockpiling basic materials for fear of supply bottlenecks. Evonik CEO Christian Kullmann said on Wednesday at the Handelsblatt annual chemical conference in Berlin: “The second quarter will be strong because there is panic buying on the chemical markets.” European chemical companies are benefiting especially because they remain able to deliver and can push through price increases.
Asian chemicals, on the other hand, are suffering from supply problems because they are heavily dependent on raw materials from the Middle East. “Currently, we are taking market share from the Chinese,” Kullmann said. But he warned against a deceptive calm: “But let’s not kid ourselves: China’s chemical industry will return to Europe with full force.” The current relief from the Middle East crisis only temporarily masks the structural problems.
Industry managers therefore expect a wave of consolidation in Europe. Competition with China will intensify further once supply chains return to normal. German chemicals must prepare for the return of the Chinese import flood, which had recently subsided.
Source: www.handelsblatt.com
