BASF Sees Itself Well Positioned Despite Iran Crisis and Hormuz Blockade

According to its own assessment, the group benefits from its regional positioning, integrated value chains, and high feedstock flexibility. For example, BASF can increasingly use butane and propane as feedstocks in its large precursor plants when naphtha is very expensive. Elvermann added: „Das merken wir schon in der Nachfrage und insbesondere auch bei den Preisen." The CFO thus sees the company equipped with greater pricing power compared to previous quarters. The order books are "auskömmlich" full.

However, Elvermann did not rule out that a more prolonged burden on the global economy could impact business. Should the restrictions in the region last longer and weigh more heavily on the global economy, BASF could also feel a weakening in demand. Customers in Europe are reacting increasingly sensitively to supply chain risks and are demanding at least a second – including European – supplier as a safeguard.

Restructuring and Job Cuts

The group is in the middle of a transformation that has been underway for some time. BASF is pursuing cost-cutting and efficiency programs to respond to global overcapacities in the chemicals industry. According to the information, job cuts are concentrated particularly at the main Ludwigshafen plant. The number of full-time positions at headquarters fell from 33,370 at the end of 2024 to around 30,000.

Agricultural Business Ahead of IPO

In parallel, BASF is pushing ahead with the IPO of its agricultural business. According to Elvermann, the prerequisites for this should be in place by mid-2027. A listing on the Frankfurt Stock Exchange is planned, with admission to the SDax, MDax, or Dax being targeted depending on the size of the IPO. BASF initially wants to remain the majority shareholder.

At the end of June 2026, the group had already completed the sale of 60 percent of its OEM and automotive refinish coatings business to the US financial investor Carlyle. The joint venture is called Surventis, with the remaining 40 percent still held by BASF. Elvermann announced: „Es ist aber geplant, dass wir zu einem bestimmten Zeitpunkt aussteigen", ideally together with Carlyle. Private equity firms typically exit again after a few years.

Demands on Policymakers

BASF considers the catalysts business to be very cash-generative and therefore wants to keep it within the group; catalysts and battery materials are managed independently but are not "klassische Verkaufskandidaten". The battery materials business is profitable in Asia but challenging in Europe, which is why BASF is sounding out partnerships there. Analyst assessments of the group are available from July 2, 2026 (Goldman Sachs Buy), June 30 and June 25, 2026 (Jefferies Hold), June 23, 2026 (JP Morgan Underweight), and June 18, 2026 (Deutsche Bank Buy).

Elvermann also used the conversation to call for better economic policy framework conditions in Europe. What's needed, he said, are productivity, investment, and competitiveness, as well as a more determined industrial and competition policy. He fundamentally assessed the federal government's reform plans, for example on pensions, positively.

Overall, the CFO paints a picture of a group that wants to offset geopolitical tensions through positioning, flexibility, and cost programs – and that sees itself as robust enough in the short to medium term to continue the transformation despite the risks at Hormuz.