BASF CEO foresees sharp second-half downturn – Reuters

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BASF (OTCQX:BASFY) likely will face a considerable downturn early in this year’s H2 as inflation begins to weigh on consumer demand and competitors may rebuild crippled supply chains, CEO Martin Bruedermueller said on Tuesday, according to Reuters.

BASF (OTCQX:BASFY) is “able pass along higher prices because there is no arbitrage trade because supply chains don’t work,” the CEO told a German industry event, but inflation followed by weaker consumer demand is “knocking on the front door.”

Bruedermueller also believes rivals will soon be able to improve their supply chains, which “means no more pricing power, and then we will struggle to generate margins on top of the high energy prices.”

With inflation high and the ECB’s upcoming monetary tightening, BASF’s (OTCQX:BASFY) largest market – Europe – likely will be hit hard, Oakoff Investments writes in an analysis newly published on Seeking Alpha.

William Murphy

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