German chemicals trade group VCI raised its 2011 sales growth outlook as strong industrial demand helped parts of the sector use plants to capacity.

Germany-based chemicals businesses are likely to see sales increase by 9% in 2011, up from a previous estimate of 4%, VCI said on Tuesday.

"In some chemical businesses, the industry is using plants to the limits of capacity," the group said, adding that the rate of capacity use in the first quarter rose 2.2 percentage points to 86.9% on average.

VCI, which represents the nation's fourth-largest industrial sector, said it expects chemical-sector output volume to gain 5% in 2011 up from 2.5% previously.

First-quarter chemical industry sales jumped 15.4% year-on-year on 8% higher output volumes, VCI added. Quarterly results released this month by chemicals group BASF and smaller peer Evonik defied a surge in raw material costs, demonstrating a strong pricing power that surprised analysts.