Not so fast. Shares of European chemicals companies have been running in overdrive since the sector hit its nadir in July and Ineos, Britain’s biggest private company, had to strike a deal with lenders to relax debt covenants. But if Tuesday’s sales figures from Akzo Nobel and Bayer are anything to go by, investors betting on the recovery have got ahead of themselves.

The FTSE 350 chemicals index, up more than 30 per cent in three months, reflects expectations that chemicals groups will prove their worth once economies return to growth. In the meantime, demand remains fragile. Take Akzo. Sales at the Dutch group fell 10 per cent in the third quarter on weak volumes outside a few buoyant markets in Asia and Latin America. Even in segments where demand improved, such as coatings, volumes remained well below last year’s. Prices also fell as weaker pricing of speciality chemicals offset stickier prices for decorative paints and performance coatings for boats and cars.