Mon, Dec 12, 2022
European Chemicals Update – Winter 2022
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.
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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