Global chemical giant BASF announced on Wednesday that it will raise prices for more products due to increased costs resulting from the U.S.-Israel-Iran conflict. The company stated it will increase prices for its commodity amines portfolio in Europe by up to 30%, with even higher increases for some products. The new pricing is effective immediately or as permitted under existing contract terms. Morgan Stanley highlighted that raw material availability is currently the most critical bottleneck. If the conflict persists and the Hormuz Strait remains impassable for an extended period, operating rates in the Middle East and Asia could decline further. Even if some companies have not formally declared force majeure, actual production losses are expected to widen. Given the highly fluid nature of the conflict, the current tracking may not capture all ongoing production halts. Investors should continue to monitor the situation's impact on the global chemical supply chain.

According to statistics, as of March 15, approximately 60% of chemical products in China saw price increases for the week, rising 4.55% compared to the previous period. Acrylic acid, p-nitrochlorobenzene, and methionine led the gains, rising by 90.7%, 80.3%, and 56.3%, respectively. Analysts at Jefferies noted that due to infrastructure damage in the Middle East, fertilizer prices are expected to remain elevated over the long term. They indicated that the effective closure of the Hormuz Strait has restricted ammonia exports, which will drive prices higher.

**Hong Kong-listed chemical sector stocks:** Shanghai Petrochemical (00338), a subsidiary of Sinopec, is one of China's leading integrated refining and chemical enterprises. It was the first Chinese company to list in Shanghai, Hong Kong, and New York. Its main business involves processing crude oil to produce synthetic fibers, resins and plastics, intermediate petrochemicals, and refined oil products. CHINA RISUN GP (01907), as China's largest producer of methanol from coke oven gas, currently operates an annual methanol production capacity of 600,000 tons, which is a core part of the company's "alcohol-ammonia" industrial chain. Additionally, the company is the world's largest independent coke producer and a leading global caprolactam manufacturer. CHINA XLX FERT (01866) has diversified its business in recent years, with the chemical segment's revenue share continuing to grow. The company's fertilizer segment mainly includes products such as methanol, dimethyl ether, melamine, and liquid ammonia, with methanol being the core product. Iran is one of the world's key methanol exporters, and about 60% of China's methanol imports come from Iran. Supply disruption expectations may have triggered a rush to purchase. CHINA XLX FERT has long-term cooperative relationships with core clients such as PetroChina and Sinopec. Methanol sales are expected to maintain strong growth through 2025, and with the sharp price increases, the company anticipates significant growth in both product revenue and profit in the first quarter of 2026.