German chemical maker BASF SE said it is raising prices for a broad range of products in Europe by up to 30% as sharply higher costs for raw materials, energy and logistics squeeze margins, a move that is reverberating through downstream industries including textiles.
The world’s largest chemical producer attributed the increases to volatility in feedstock pricing, surging energy costs and transport bottlenecks, with many of the changes taking effect immediately or as current contracts allow. Some product lines could see hikes of more than 30%.
BASF’s portfolio spans intermediates and speciality chemicals used widely in sectors such as textile processing chemicals, agrochemicals, pharmaceuticals and coatings. Higher intermediate costs often feed through to manufacturing of dyes, auxiliaries and finishing agents crucial to the textile industry, which is already navigating elevated input costs and supply chain disruptions.
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The price moves come as Europe’s chemical sector faces mounting pressures from geopolitical tensions in the Middle East, which have driven up energy and petrochemical feedstock prices and raised broader inflationary risks across industrial supply chains. European chemical producers have warned of potential disruptions if supply routes such as the Strait of Hormuz remain constrained, with rising costs already contributing to weaker results in parts of the industry.
Industry groups say that continued pressure on input costs could ripple through to manufacturers and exporters, including textile firms reliant on global chemical supply lines, potentially increasing costs for production and finished goods.
BASF’s pricing action mirrors moves by some peers in the chemicals industry to pass on elevated costs to customers as part of efforts to preserve margins amid an uncertain global economic backdrop. Analysts say the trend of upstream cost inflation poses challenges to downstream sectors already coping with weak demand and higher operating costs.
