High energy costs – what Covestro, Evonik & Co. expect

Dusseldorf Chemical managers like to use football comparisons. At the end of 2021, Evonik boss Christian Kullmann described the industry as the “flank god of industry”, underlining its importance for the innovative strength of the economy. A year later, the game has turned. “The chemistry team is badly hit,” says Covestro boss Markus Steilemann, “and it will get even harder.”

Steilemann is Kullmann’s successor as President of the industry association VCI. Developments over the past few weeks drove him to an incendiary speech in mid-December, in which he warned of the end for large parts of the chemical industry.

Companies fear serious consequences from expensive energy, recession and onerous regulation in 2023 – with consequences for the economy as a whole, which depends on the supply of raw materials. But there are also bright spots.

1. Demand is likely to remain weak