Higher oil and gas prices have sharply increased feedstock costs for energy-intensive producers.
Industry group VCI highlighted the sector’s heavy reliance on hydrocarbons, amplifying exposure to price volatility.
BASF expects pricing gains to offset rising costs later this year, signaling cautious optimism.
Brenntag reported that customers have so far accepted price increases.
Demand remains fragile across Europe, particularly in Germany, where economic recovery continues to lag.
Asian competitors benefit from lower cost structures, strengthening their competitive advantage in global markets.
Analysts warn that pricing alone may not drive a sustained recovery amid weak demand and uncertain conditions.
Persistent high energy costs continue to challenge the sector, reinforcing concerns over long-term profitability.
