The Indian chemicals industry is forecast to record value-added growth this year. Specialty chemicals remains a fast growing segment, on the back of favourable oil prices and strong domestic and export demand.Italian chemicals production increased 3.5% to EUR 55 billion. Exports, which accounted for 55% of total revenues grew 9%. Domestic demand increased and expanded across all customer segments, except for construction and consumer durables. The specialties segment grew 7.8%.
The outlook for 2019 remains positive for the time being, despite a slowdown in early 2018 (in Q1 of 2018, Italian chemicals production grew just 1.5%, below the European average of 1.9% and Italian manufacturing average growth of 4.6%). This slowdown was mainly due to increased domestic and international political uncertainty, impeding higher chemicals purchases.
On average, payments in the Italian chemicals sector take around 60 days. Payment experience is good, and the level of protracted payments has been low over the past couple of years. The level of payment delays and insolvencies is low, and this should remain generally unchanged this year.
Italy entered a recession in H2 of 2018, driven by negative domestic demand. Industrial production contracted 1.1% q-o-q in Q4 and the composite PMI is worsening in negative territory.
The fragile economic outlook continues to be clouded by political volatility, undermining confidence in public finances and the banking sector recovery.
As a result, credit conditions have been worsening: since the start of 2018, the three-month moving average of new credit to non-financial corporations has been decreasing and the ECB’s Q4 bank lending survey points to further tightening in 2019.
Trade receivables risk mitigation
Should your debtors fail to meet their payment obligations, Atradius Collections can help by initiating a professional collection process. We focus on the relationships between you and your debtors at all times.
Our team of collection specialists carry out the collection process in-house, contacting the debtors both verbally and in writing whilst adhering to federal and state laws. When there is a case of dispute, we aim to reach an amicable solution between you and the debtor. We do this by analysing all contractual documents (e.g. signed contracts, orders, confirmations, invoices and delivery notes, as well as all standard terms that have been agreed upon).
All investigations are completed with the assistance and agreement of our legal team.
If third-party collections do not yield results, we would consider taking legal action after consulting with you.
We have a professional network of experienced law firms in Italy to perform judicial credit collection activities. This network covers the whole country and is able to manage legal action in all court districts.
Our lawyer will first send a warning letter (‘Lettera Monitoria’) to the debtor via registered post, so there is proof of delivery, or via certified email address (pec). If the debtor does not pay or reply, thereby disputing the debt, the judicial phase will start with the injunction decree (‘Decreto ingiuntivo’).