German chemicals lobby warns against undue optimism after unexpected lift in Q1

"This is a ‌small peak in a structural crisis we ‌are facing," VCI Managing Director Wolfgang Grosse Entrup said at the Handelsblatt Annual Chemical Industry Conference in Berlin. Europe's ⁠embattled ​chemicals industry ⁠has received an unexpected lift from the Iran war ⁠in the first quarter, as supply disruptions raise costs ​for Asian rivals and customers prioritise reliability over ⁠price.

Germany's chemicals lobby VCI warned ​against undue ​optimism on Tuesday ‌after a ​rise in order books across the sector at the ‌start of the year, saying it reflected panic among customers rather than sustained recovery. "This is a ‌small peak in a structural crisis we ‌are facing," VCI Managing Director Wolfgang Grosse Entrup said at the Handelsblatt Annual Chemical Industry Conference in Berlin.

Europe's ⁠embattled ​chemicals industry ⁠has received an unexpected lift from the Iran war ⁠in the first quarter, as supply disruptions raise costs ​for Asian rivals and customers prioritise reliability over ⁠price. Entrup said the energy crisis had become the ⁠industry's Achilles ​heel and called on politicians to accelerate the pace of reforms to improve German ⁠competitiveness.

For years, European producers have struggled with high energy ⁠costs, ⁠weak demand and intense price competition from Asian peers.