Germany’s Chemical Industry Hit Particularly Hard by Price Rise for Russian Gas

The business climate in Germany’s chemical industry deteriorated significantly in the past twelve months. Business expectations fell to a low of minus 44.4 points in July 2022, finds an ifo Institute survey. In the same month the previous year, the figure was plus 11.8 points. The war in Ukraine is further exacerbating the tense situation in the industry. “Natural gas accounts for 44 percent of energy consumption in the chemical industry. It also plays an important role in product manufacturing: around 30 percent of all chemical products require the use of natural gas,” says ifo industry expert Anna Wolf.