BASF, the German chemical giant, announced on Wednesday a price increase of approximately 30% for certain industrial products in Europe, driven by soaring energy and raw material costs linked to the Middle East conflict. This move directly impacts buyers of household care, industrial cleaning, and industrial formulation chemicals, signaling broader supply-chain pressures for European importers and formulators.
Scope of the price increase
The price hike, at least one-third, applies to "all products in its portfolio for household care, industrial and institutional cleaning, as well as for industrial formulators," the company stated in a press release. Some products facing "disproportionate impact from high raw material and energy costs" will see increases exceeding 30%, a BASF spokesperson confirmed, though specific items were not disclosed.
Drivers behind the hike
BASF attributed the decision to "significant volatility in prices and availability of essential raw materials," "rising national and transcontinental logistics costs," and "sharp increases in packaging and energy costs." The closure of the Strait of Hormuz has exacerbated hydrocarbon price spikes, directly affecting derivative chemicals used in production.
Impact on Care Chemicals division
The affected division, Care Chemicals, supplies emulsifiers, UV filters, polymers, and other ingredients for hygiene, beauty, and cleaning products. With production capacity utilization at only 70% last year due to weak global demand, the German chemical industry now faces "first signs of extreme shortages and supply chain disruptions," warned Wolfgang Große Entrup, director of the German Chemical Industry Association (VCI), last week. The sector is in "absolute crisis mode," he added.
What buyers should watch
European importers and formulators should monitor BASF's pricing actions as a bellwether for broader chemical cost trends. The 30%+ increase may prompt renegotiations of supply contracts and accelerate searches for alternative sourcing, particularly for raw materials tied to Middle East hydrocarbon markets. Logistics and packaging cost pressures are likely to persist, affecting downstream pricing for cleaning and personal-care products.
Source: Read the original report | Published: March 18, 2026