German-based chemical company BASF reported a gain in total material sector business sales in the third quarter, as volume increases in the monomers division offset lower performance materials prices.
Materials division sales rose by 1.9pc to €3.4bn ($3.69bn) from a year prior. A 3.5pc increase in volumes helped to negate a 0.5pc decline in prices during the quarter. Increases in the MDI, propylene oxide and ammonia value chains drove higher overall volumes in the third quarter, and the sector benefitted from a stable market environment, BASF said in an earnings call on Wednesday.
The company's materials sector has a performance materials division, which includes engineering plastics, thermoplastic polyurethane and polyurethane systems, and a monomers division that encompasses isocyanates, adipic acid, chlorine, ammonia and other products.
Performance materials volumes were stable, rising by just 0.2pc in the third quarter, while sales declined by 3.3pc. This sales decline was driven by lower performance materials prices, down by 2pc on the year, primarily in Europe and North America.
The monomers division reported a 7.2pc increase in volumes, contributing to a 7.8pc rise in sales year over year. A 1.2pc price increase in the monomers division and improving demand partially compensated for price declines in performance materials.
BASF's total sales remained flat at €15.7bn in the third quarter from a year prior.
BASF's outlook for the full year remained unchanged, with slight growth in chemical production expected. The company also noted that it expects overall volumes to maintain steady through the fourth quarter.
