After a disastrous performance in January 2009, the German plastics processing sector registered a further downslide in February. Following a nearly 24% setback in January against the same month of 2008, the comparative month-on-month decline for February was 26%. Figures published by Germany’s Federal Statistical Office (Wiesbaden; www.destatis.com) show that technical components were worst affected by the downturn, with sales plummeting 34%.

The situation eased slightly in March, but only in relative terms. In “normal” times, a drop of almost 15% year-on-year would have been considered massive. In view of the strained economic situation, however, the picture is perceived as somewhat brighter. Whether the improvement reflects restocking, government stimulus packages, the weather or the general consumer climate will become evident over the coming months.

In any case, the downtrend in sales on the converters’ domestic market seems to be bottoming out. In March, demand from the construction industry was virtually unchanged against the weak month of 2008. Even the packaging and sheet/film business segments registered declines of 5-6%. For the most part, the farther away the target market, the worse the situation. While the rate of decline in export momentum slowed in the euro zone, exports to other parts of the world remained weak, although this could be due in part to exchange rate fluctuations.

The German plastics conversion sector altogether saw sales decline of 21.5% in Q1 2009 to around EUR 8.6 bn. Compared with other segments, building materials seemed comparatively well positioned. Although sales receded by 9.4% to EUR 835m, the downtrend remained below 10%.

Packaging producers’ 11.9% drop in sales year-on-year to EUR 1.5 bn in the first quarter was a comparatively good performance and reflects the proximity to consumer markets. Food packaging was virtually stable, according to most market players.

The category “other plastic goods”, in which technical components account for around two-thirds, appears to have taken the hardest blows. In view of this segment’s strong dependence on the automotive sector, it is hardly surprising that quarterly sales plunged 29.1% to just over EUR 3 bn.