The chemical giant BASF issues its fifth price increase announcement, with basic amines potentially increasing by up to 30%.

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Cailian Press

On Wednesday, local time, global chemical giant BASF announced that due to rising costs caused by the US-Israel-Iran war, the company will raise prices on more products.

BASF announced that it will increase prices for its commodity amines portfolio in Europe, with the highest increase up to 30%, and some products may see even higher hikes. The price adjustment takes effect immediately and may be implemented under existing contract terms.

The price increase involves products including: Ethanolamines, Ethyleneamines, Isopropanolamines, Methylamines, N,N-Dimethyl ethanolamine (DMEOA), 3-(Dimethylamino)propylamine (DMAPA), Dimethylformamide (DMF), Propylamines, and Ethylamines.

These products are all so-called general-purpose intermediate raw materials. Although their names sound abstract, they are actually essential materials in the industrial formulas of electronics, agriculture, pharmaceuticals, and other industries.

For example, ethyleneamine is one of the key raw materials for epoxy resin curing agents, and epoxy resin is a critical base material for wind turbine blade composites and PCB electronic substrates.

Dimethylformamide is a key solvent used in the production of PVDF (Polyvinylidene fluoride), which is an important binder in lithium battery cathode materials.

This is also the fifth price hike announcement released on BASF’s official website since the war began nearly a month ago.

The company reiterated that this is a response to the sharp increase in raw material prices, energy, and logistics costs caused by the Middle East military conflict.

The chemical giant first announced on March 4th that it would raise prices globally for its antioxidant, process stabilizer, and UV stabilizer product lines used in plastics, with increases up to 20%.

Then, on March 18th, BASF issued three more price hike notices, announcing increases of up to 30% for all products in its household care, industrial & institutional cleaning (I&I), and industrial formulations segments in Europe, along with higher prices for European formic acid and neopentyl glycol.

Due to uncertainties in oil and natural gas supplies, price increases have become routine in the chemical industry.

Another German chemical supplier, Lanxess, stated this week that, affected by rising raw material and energy costs, it will raise prices on multiple products by up to 50%. US chemical giant Dow Chemical announced on Tuesday that it will double the previously announced price increase for polyethylene. Polyethylene is a key raw material for plastics produced from natural gas or naphtha.

JPMorgan Chase pointed out in a report on Wednesday that disruptions to the global supply chain caused by the war may create greater room for price increases among European chemical companies.

Analysts note that this could bring substantial profit upside for the industry in the short term, but the magnitude and duration will still depend on how long supply disruptions last and how sensitive demand is to price changes.

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Editor: Ling Chen