German chemicals lobby VCI says no sector turnaround in sight after weak Q3

Nov 11 (Reuters) - Germany's chemicals lobby VCI said on Tuesday that production, sales and prices declined in the industry during the third quarter, as the chemical sector remains under pressure from overcapacity, high operating costs and a difficult economic environment.

The German chemical industry, including pharmaceuticals, saw a 1.5% drop in quarterly production numbers, while producer prices declined by 0.6%, VCI said.

"The chemical industry, in particular, is struggling on all fronts. Production, sales, prices, capacity utilization: everything is in decline," VCI Managing Director Wolfgang Grosse Entrup said in a press release.

"A sense of optimism? Nowhere to be seen," he added, citing special funds and some economic policy adjustments that had failed to bring about an economic relief for the sector.

The industry association maintained its gloomy 2025 forecasts, with production volumes expected to fall by 2% and industrial sales by 1%, and said a turnaround for the better was "not in sight".