Berlin 10th August : The German chemical industry has been badly hit by rising gas prices according to a survey. In the study from the Munich-based ifo Institute for Economic Research released on Tuesday, the conflict between Ukraine and Russia has “further intensified tensions in the business”.Business expectations dropped to the low of 44.4 points in July, compared with + 11.8 points in the same month in 2021.
“High prices for energy are leading production in Germany to decrease while pressure on imports is growing,” Wolfgang Grosse Entrup the Director of the VCI, the Managing Director of the nation’s chemical industry group VCI spoke to Xinhua on Tuesday.
In Germany in Germany, 44 percent of the energy use of the chemical industry is covered by natural gaz, and approximately 30 percent of chemicals require natural gas, Xinhua news agency reported.
Prices for gas in Europe are over double than they were prior to the beginning of the conflict between Ukraine and Russia in the latter part of February.
European TTF gas futures were trading at about the sum of 190 euros ($195) per megawatt hour on Tuesday.
The biggest economy in Europe relies heavily on gas imports from countries.
In 2021, 97 percent of natural gas that was fed into Germany’s grid came from abroad, as per the Federal Statistical Office (Destatis).
In the past Russia was once one of the major supplier of natural gas to Germany; in May, natural gas and crude oil valued at 1.9 billion euros were being shipped from Russia to Germany.
However toward the close of July Russia decreased gas deliveries to Germany through the vital Nord Stream 1 pipeline, to the current 20 percent.
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