According to reports, martinbruedermueller, CEO of basfy.us, a global chemical giant, said on Tuesday that the company may face a serious downturn in the early second half of this year as inflation begins to suppress consumer demand and competitors may rebuild their paralyzed supply chains.

Bruedermueller said at an industry event in Germany that the company may “pass on the pressure of rising costs, because there is currently no arbitrage transaction due to supply chain failure”, and weak consumer demand accompanied by inflation is also brewing.

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

It is reported that oakoffinvestments, an investment institution, also wrote in an analysis report recently that Europe, BASF’s largest market, may be hit hard due to high inflation and the upcoming monetary tightening by the European Central Bank.