Chemical industry in the clamp: Chinese price struggles add

Chemical industry in the clamp: Chinese price struggles add

The chemical industry faces considerable challenges, which are increased by increasing price pressure from China. Experts warn that this phenomenon could have far -reaching effects on the German economy. In Ludwigshafen, where the well -known chemical company BASF is based, a billion -dollar savings program has been announced that intervenes deeply into the domestic chemical industry.

As the data analysis of the market research company ICIS shows, a massive oversupply in the basic basic category, including mass plastics, ensures a drop in prices on the world markets. China has increased its production capacities considerably since 2020, without the demand being. This overexertion has led to Chinese manufacturers exporting in record quantities, which means that prices are under great pressure.

market analysis and international competitive situation

The industry association of chemical industry (VCI) is concerned about the current situation. The managing director Wolfgang Große Entrup found that the mood in the industry was "noticeably cooled". This is primarily due to the insufficient recovery of the global economy and the weak global industrial production. The combination of these factors leads to a falling demand for chemical products, which significantly endangered the company profits.

The pressure on European manufacturers increases because the production costs in many areas are no longer competitive. Chinese companies that have massively invested in new facilities can be aggressive to the international market through government subsidies and lower production costs. This not only endangers the German chemical companies, but also presents the entire European industry with great challenges.

While other countries are pursuing similar strategies, experts criticize that China's approach is strategically promoted, which could lead to serious unfair trade practices. The VCI demands from the European Union to address these problems through sanctions to protect its own companies.

The economic dependence of Germany on China also develops into a delicate topic. A survey among managers shows that 85 percent of them see China as the largest competitor, followed by the United States with 80 percent. This dependence not only endangers security of supply, but also makes it clear how necessary it is to shift production capacities back to Europe.

In the discussion about a withdrawal of the production facilities, Wolfgang Große Entrup warns that it is high time to improve the location conditions in Germany. This includes competitive energy prices, reduced corporate tax rates and the elimination of unnecessary bureaucracy. If Germany dares this departure, the chemical industry could return to a growth path and become more attractive for future investments.

The development in the chemical industry not only illustrates the challenges that arise from international markets, but also shows how important it is to make strategic decisions to ensure competitiveness. In a globalized economy, it is crucial to keep up and adapt to the circumstances to achieve long -term success.