Major chemical companies, including BASF and Lanxess, have announced significant price hikes for some products due to high energy costs and scarce resources linked to the war in the Middle East.
BASF, whose customers include Unilever and Henkel, revealed that prices for its detergents and cleaning products will increase by 30%.
Lanxess said it would raise prices for raw materials used in tyre production by 50%, citing the ongoing war in the Middle East as a key factor. The company is facing elevated energy costs and disruptions to its supply chains, as oil and gas are critical inputs for the chemical industry.
Evonik, which produces over 9,000 chemicals, is also passing on higher raw material costs. It raised the price of methionine—an additive used in animal feed—by 10% earlier this month. The increase has an impact on poultry and cattle farmers worldwide.
Although the US/Israeli war on Iran is only 18 days old, chemical companies in Asia are already experiencing severe logistical issues due to their reliance on imports from the Middle East.
In Europe, the effects are more limited for now, but experts warn that prolonged instability could worsen the situation. Fertiliser production at Agrofert’s European facilities has already been reduced.
Price increases are being felt beyond the chemical sector. In construction, Heidelberg Materials has announced plans to adjust its prices to cover rising transport costs. CEO Dominik Von Achten said the company prefers temporary surcharges over overall price hikes, noting that swift action is essential during such crises.
