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By Ozan Ergenay
March 19 (Reuters) - Lanxess said it was raising chemic prices to antagonistic the effects of the Middle East conflict, aft the speciality chemicals shaper reported yearly results and announced occupation cuts earlier connected Thursday.
The U.S.-Israeli warfare connected Iran, continuing into its third week, has pushed up prices successful the chemicals assemblage and disrupted markets, sparking fears that the widening struggle volition make an lipid terms shock, rise ostentation and dampen user demand.
Chemical companies person been deed peculiarly hard, arsenic galore earthy materials for the manufacture are produced successful the Middle East.
Lanxess CEO Matthias Zachert told reporters that the prices the institution pays for vigor and materials had been going up since the warfare started.
"We person to bash thing astir it and walk on these price increases, truthful that we bash not person to ft the bill," Zachert said.
"If you person a look astatine the situation, our competitors are doing the aforesaid thing, but we started aboriginal successful bid to counteract arsenic aboriginal arsenic possible."
Some different chemicals companies, including Brenntag , Wacker Chemie and BASF , person besides started raising prices owed to surging vigor costs.
If the Middle East struggle continues, the chemic manufacture volition spot a further and lasting summation in merchandise prices, Zachert said.
In a abstracted connection on Thursday, German chemicals relation VCI said the warfare significantly accrued the risks to the planetary economy, peculiarly owed to the blockade of the Strait of Hormuz.
"Consequently, beardown terms increases are expected, particularly for products wherever the portion plays a cardinal relation successful the global trade," the manufacture lobby said.
(Reporting by Ozan Ergenay in Gdansk, editing by Milla Nissi-Prussak)
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