Dr. Michael Schymura

Economics of AI & Innovation
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Updated: Feb 22
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Chemical Industry Radar

Browse all past editions of the monthly industry analysis. Each edition captures the sentiment, developments, and outlook of the German chemical sector.

2026

January 31, 2026

January 2026

January 2026 marks a "cautious repositioning" rather than a broad-based recovery. Three historic policy milestones—the 5-cent industrial electricity price, the BASF Ludwigshafen site agreement, and the KSpTG carbon storage framework—provide the first structural counterweight to the deindustrialization narrative. The ifo Business Climate improved marginally to -23.5 points, but the current business situation deteriorated sharply to -34.9 points, revealing an industry operating in two speeds.

2.8
Bearish
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2025

December 31, 2025

December 2025

December 2025 marks the moment the "structural fracture" transitioned from a risk forecast to operational reality. The VCI Annual Balance confirms the crisis: chemical production down 2.5%, capacity utilization at historic low of 70%, and 10% of companies planning to close entire sites. The ADNOC-Covestro takeover (81.77% acceptance) signals the transfer of German industrial assets to sovereign wealth.

2.3
Bearish
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December 8, 2025

November 2025

The mood in the German chemical industry has shifted from chronic concern to acute existential alarm. The VCI warns of a "knock-out" phase for domestic production. Massive layoffs at Wacker (1,500) and Bayer (12,000), the Covestro acquisition by ADNOC, and persistently high energy costs define the month.

2.5
Bearish
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November 8, 2025

October 2025

October 2025 stands as a definitive inflection point—the transition from cyclical downturn to permanent structural recalibration. The ADNOC-Covestro finalization, BASF's Carlyle divestiture, and the damning Hydrogen Strategy audit define the "Month of Structural Realization."

3.0
Bearish
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