Double Blow from Energy and Shipping: German Chemical Giant Forced to Cut Production Due to Middle East Conflict

Golden Ten Data reported on March 13 that the German Chemical Industry Association has warned that the shockwaves from the Middle East war are beginning to reverberate within Europe's largest economy. Due to supply chain paralysis and soaring energy costs, multiple companies have started to reduce their production. The association stated that while costs are rising, global shipping routes for transporting key raw materials and intermediate products have been disrupted, exacerbating the situation. These issues have raised concerns about a renewed slowdown in industrial growth in Europe's industrial heartland. As a pillar industry supporting daily consumer goods such as automobile manufacturing, pharmaceuticals, and agriculture, the chemical sector is facing multiple pressures. Since the outbreak of the war, European natural gas prices, which are a crucial input for the production of ammonia and nitrogen fertilizers, have risen by more than 50%. Currently, the war is also suppressing the output of intermediate products from Asia, threatening the normal operation of German production lines.