The ongoing conflict in the Middle East is currently affecting raw material and logistics markets in a way that is rapidly impacting speciality chemicals. We want to be transparent, act proactively and communicate early and openly. We therefore wish to inform you that both prices and lead times may be affected going forward due to the following factors:

The situation has an immediate impact on energy, transport, and petrochemical markets. Oil and gas prices have increased significantly following the escalation around the Strait of Hormuz, through which a substantial share of global oil and LNG flows. Price levels are driven by global market conditions and are beyond our influence as an individual company.  

At the same time, freight and logistics costs have risen sharply. Shipping routes are being re-directed or suspended in the region, resulting in longer lead times and higher transport costs. Fuel surcharges, war risk surcharges, increased insurance premiums, and extended transit times are now being implemented across the market, affecting the chemical industry in Europe as well.

As crude oil is the foundation of the petrochemical value chain, rising oil prices lead to higher costs throughout the chain. Speciality chemicals are therefore affected both by increased raw material costs and by higher energy and logistics expenses. In addition, several raw material producers have declared force majeure or introduced allocation measures, further impacting availability and delivery times.