High energy prices squeeze chemical profits; JPMorgan warns European giants may face price hike dilemma

Golden Ten Data reported on March 4 that JPMorgan stated in a research report that, due to the continued rise in oil and natural gas prices, European chemical companies may have to increase product prices. However, the report also pointed out that, against the backdrop of severe industry overcapacity and intensified competition, price hikes may be difficult to implement. Analysts expect that over the next 12 to 18 months, Lanxess, BASF, Evonik, Wacker Chemie, and Arkema will face the greatest incremental cost pressures. In a conservative scenario, analysts anticipate that market profit expectations for these companies will be revised downward. The report added that other companies in the sector face relatively smaller cost pressures.