UIC Cuts 2012 French Chemical Output Forecast
French chemical industry association UIC has cut its growth forecast for the country's chemical output next year to 1.8 % from 2.4 %, due to the economic crisis and customers waiting to restock.
For this year, however, UIC raised its production growth forecast to around 4.5 % from the about 3 % it had forecast in January, compared with 10.8 % growth in 2010.
The raised estimate is thanks to a "very good" first quarter, with volumes up 7.1 %, backed by demand from the car industry.
Production growth began to weaken in the second quarter, taking total output growth to 7 % in the first nine months of the year against 12.7 % in the same period last year.
"In the context of a general economic slowdown and great uncertainties linked to the sovereign debt crisis in the euro zone, the overall outlook in the industry is less clear," the UIC wrote in a statement.
"This uncertain climate, however, should not translate into violent collapse in chemical activities, but in growth rates that are significantly less high," the UIC added.
The French chemical industry is the second biggest in Europe after Germany and fifth worldwide, with sales of 77.1 billion euros ($104 billion) in 2010.
France's listed chemical groups are specialty chemicals maker Arkema and industrial gases company Air Liquide .
