German plastics production reaches new record

14-May-05

German polymer producers had a robust year in 2004, in terms of output volume and value. Polymer output stood at a record 17 million tons in 2004 in Germany- a rise in output by 4.2% and sales value increased by 10% to E19.9bn. This increase follows three consecutive years of declines. Exports showed an increase of 15% to 4.8m tons and 16.1% in value to E6.8bn The year saw oil prices rising by 33%, triggering a rise in raw materials costs. Margins remained under pressure as prices of various feedstock spiked up : propylene was up by 21% and naphtha by 13%. Continuing pressure on margins is exerting a continuous pressure on processors to increase productivity and output to maintain global competitiveness. Plastics production in Germany in 2005 is forecast to continue to outstrip the growth in gross national product (GNP), predicted to grow by 1% this year.