Globalpu News: According to reports, Martin, CEO of global chemical giant BASF Companies could face a pretty severe downturn early in the second half of the year as inflation begins to weigh on consumer demand and rivals could rebuild paralyzed supply chains, Bruedermueller said on Tuesday.

Bruedermueller told an industry event in Germany that companies could "pass on cost pressures because there is no carry trade right now because of supply chain failures," while weaker consumer demand with inflation is also brewing.

Bruedermueller also believes that competitors will soon be able to improve their supply chains, which "means that they no longer have pricing power, and then it will be difficult for us to generate profits on the basis of high energy prices."

It is reported that the recent investment institution Oakoff Investments also wrote in an analysis that Europe, BASF's largest market, could be hit hard due to high inflation and imminent monetary tightening by the European Central Bank.