Inside this Article

• Price increases are expanding across coatings raw materials, indicating broader cost escalation.
• Suppliers are linking pricing actions to energy markets, logistics and geopolitical developments.
• External reporting shows continued disruption across energy and petrochemical supply chains.

A series of price increases across coatings raw materials is emerging, as some suppliers cite energy, logistics and feedstock conditions tied to Middle East tensions .

The trend follows early signals reported by PCI in March, when instability in energy and logistics began to emerge as a potential risk for coatings supply chains.

Recent announcements suggest those risks are now suggest those risks are now reflected in a broader range of pricing actions.

Pricing Expands Across Key Inputs

Recent supplier announcements show increases across multiple types of coatings raw materials.

BASF SE raised prices for neopentyl glycol, an intermediate used in polyester resins.

Eastman Chemical Company increased prices for n-butyl alcohol, used as both a solvent and intermediate.

Nouryon announced increases for ketone peroxides, citing developments in the Middle East and their impact on oil and petrochemical markets.

LANXESS raised prices for sulfur-based intermediates by an average of 40%, pointing to geopolitical tensions and rising energy and logistics costs, with the increase occurring outside its normal pricing cycle.

The range of materials affected indicates pricing actions are occurring across multiple input categories rather than a single feedsto.

Disruptions Extend Beyond Pricing

According to Reuters, liquefied natural gas markets experienced sharp volatility during the conflict, with prices rising significantly and industry participants warning that the sector has been “scarred” even as ceasefire conditions begin to ease.

Reuters also reported that shipping activity through the Strait of Hormuz was significantly disrupted during the conflict, constraining tanker movements through one of the world’s most critical energy corridors before traffic began to resume.

In addition, Reuters reported that attacks on energy infrastructure in Saudi Arabia reduced oil output and disrupted flows through major pipeline systems.

Separately, The Washington Post reported that supply chain disruptions tied to the conflict have affected multiple industries, with shortages of petrochemical feedstocks such as naphtha contributing to production constraints.

According to the U.S. Energy Information Administration, more than 20% of global petroleum liquids and over 20% of liquefied natural gas trade move through the Strait of Hormuz, underscoring the importance of the region to global supply.

Implications for Coatings Manufacturers

For coatings manufacturers, this environment reflects a combination of higher input costs and tighter availability of key raw materials.

As pricing actions continue, customers may also seek greater clarity around the duration of increases and the specific cost drivers behind them.

Outlook

The near-term picture remains unsettled. Even with ceasefire developments, recent reporting cited above indicates that LNG supply chains remain under strain, shipping through Hormuz is only beginning to normalize and broader oil-market disruption could continue to affect global economies in April and beyond.

PCI will continue to track these developments and their implications for coatings manufacturers and formulators.