Germany's chemical sector, the largest in the European Union, is experiencing difficulties due to delays in supplies of raw materials amid the worsening situation in the Red Sea, Report informs via Reuters.
"The effect is especially noticeable in the segment of medium-sized companies specializing in the production of fine and specialty chemicals," said Henrik Meincke, chief economics expert at the German industrial organization VCI.
He added that German chemical companies buy raw materials mainly in Asia. Now the freight through the Red Sea has declined, causing delays. In addition, due to changes in routes, there is an increase in prices for raw materials.
