BASF raises prices on intermediates
intermediate products to offset higher raw material costs.
With immediate effect, the company is increasing its prices for all acid chlorides, chloroformates and related specialties by seven per cent.
The intermediates affected are used for the manufacture of penicillin generic drugs and in particular amoxicillin, which is used for the treatment of infections.
A spokersperson for BASF told In-PharmaTechnologist.com that while the price hike was big, it was necessary, as the company needs to make profit on these products.
The company blamed increasing raw material costs and the resulting unsatisfactory margins.
Indeed, BASF saw its net profit fall 24 per cent from a year earlier in its third-quarter results.
The world's biggest chemical maker warned a few months ago that it would increase its sales prices to counterbalance the pressure on margins caused by rising raw material prices.
BASF's total sales for intermediates products represent €2bn annually.
Meanwhile, the company said that three of its intermediate products - Neodecanoyl Chloride, Pivaloyl Chloride and Ethylhexyl Chloroformate - will see fixed price increases, independent of their market price, but which will be in the region of seven per cent.
These products are "special", said the spokesperson, as they are not produced on the same basis compared to other intermediates.
BASF were unable to comment on any further points.
