Poland — March 19, 2026 — Lanxess said it is increasing prices across parts of its chemicals portfolio in response to rising energy and raw material costs linked to the ongoing Middle East conflict. The move comes as the German specialty chemicals producer reported its annual results and announced job cuts earlier the same day.
The company said the escalation in the region, now in its third week, has disrupted markets and driven up input costs across the chemicals sector. According to the announcement, higher prices for energy and raw materials have begun to impact operating conditions, prompting companies to adjust pricing strategies.
Rising Input Costs Drive Pricing Action
Lanxess Chief Executive Officer Matthias Zachert said the company has seen a steady increase in costs since the conflict began. “We have to do something about it and pass on these price increases, so that we do not have to foot the bill,” he said.
Zachert added that competitors across the sector have taken similar steps. He noted that Lanxess moved early to implement price increases in order to counter the impact of cost inflation as quickly as possible.
Chemical companies have been particularly exposed to the situation, as a significant portion of raw materials used in the industry originates from the Middle East. Disruptions in supply and rising energy prices have contributed to broader cost pressures across the value chain.
Other industry players, including Brenntag, Wacker Chemie, and BASF, have also begun raising prices in response to higher energy costs, according to the announcement.
Industry Warns of Continued Price Pressure
Zachert said that if the conflict continues, the chemicals industry could face further and sustained increases in product prices. The outlook reflects growing concern about the stability of supply chains and the availability of key inputs.
In a separate statement, the German chemicals association VCI said the conflict has significantly increased risks to the global economy. The group highlighted the potential impact of disruptions in the Strait of Hormuz, a key route for global energy and chemical feedstock flows.
“Strong price increases are expected, especially for products where the region plays a central role in global trade,” the association said.
The situation has also raised broader concerns about a potential oil price shock, which could contribute to inflationary pressures and weaken consumer demand, according to the announcement.
Supply Chain Exposure to the Middle East
The developments underline the chemicals sector’s reliance on Middle East-based feedstocks and energy inputs. Disruptions in the region can quickly translate into higher production costs, particularly for petrochemical and specialty chemical producers with global supply chains.
The current situation highlights how geopolitical events can influence pricing dynamics across the industry, especially when key raw materials and energy supplies are affected.
Chemicals & Materials Outlook
The announcement reflects how geopolitical disruptions are directly influencing cost structures in the chemicals industry. Price increases by multiple companies indicate broader sector-wide pressure linked to energy and raw material inputs. Continued instability could sustain upward pricing trends across affected product categories.
