In this edition of European Chemicals Update from Kroll, we evaluate current trends for key raw materials, prevailing investor sentiment and valuation developments in the featured pharma chemicals sub-sector.

European Chemicals Update – Early Winter 2022

Our top insights are detailed below:

  • Key raw materials prices in the chemicals sector witnessed a fall in Q3 2022, affected mainly by declining demand and accelerated deterioration of the global economic conditions.
  • Next, the ifoBusiness Climate Index for the German chemical industry has fallen further in Q3 2022, with current conditions showing a sharp decline and expectations falling further in the negative territory, mainly as a consequence of high energy costs in Europe, global economic conditions and imminent recession. This indicates the German companies’ concern regarding current business activities and extreme conditions in the near future.
  • Finally, in the pharma chemicals sub-sector, featured companies have shown a fall in the market capitalization. Bayer’s market capitalization held up best over the last 12 months, followed by Merck, Novozymes and Lonza Group.

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