Germany is increasingly importing important chemicals from abroad as German industrial giants such as BASF grapple with a surge in energy prices caused by cuts in Russian natural gas supplies.
This year, Germany’s chemical imports have almost doubled. Germany imported about 2.8 billion tonnes of inorganic chemicals in the first half of 2022, according to the German Federal Statistical Office. That’s an increase of around 40% from the same period last year. Meanwhile, domestic chemical production in Germany has fallen sharply as manufacturers cut production due to high gas costs.
Oliver Rakau, an economist at Oxford Economics, said: “We will see significant import substitution in energy and gas-intensive products. The evidence is likely to build up in the coming months.”