Dow Chemical, BASF, and Celanese officially announce price hikes in May! PE prices surge by 100%—'plastic inflation' hits across the board.

Successive moves by industry giants: Major plastics & chemicals companies continue raising prices in May—with increases up to 100%. Under pressure from supply chain disruptions, global chemical giants began adjusting prices as early as March. By April and May, both the frequency and magnitude of these hikes escalated significantly. BASF, Dow Chemical, Celanese, Tosoh, and Covestro have all issued notices of price increases effective in May—covering polyethylene (PE), MDI, engineering plastics, plastic additives, and other product categories. Dow Chemical: PE prices up ~100% over two months On April 25, U.S. chemical giant Dow Chemical stated that the Middle East conflict has disrupted approximately 50% of global ethylene and polyethylene production capacity, triggering severe supply-demand imbalances and sharp price surges. Dow had already announced a PE price increase in April—raising prices by $0.30 per pound (approx. 60%)—and plans another $0.20-per-pound hike in May, bringing the cumulative increase to roughly 100%. Dow CEO Jim Fitterling described this round of increases as “unprecedented in over a decade.” BASF: Additives up by as much as 25% On April 27, BASF announced further price increases for its global portfolio of antioxidants, processing stabilizers, and light stabilizers used in plastic applications—up to 25%. BASF explicitly attributed this adjustment to sharply rising raw material costs, energy expenses, and logistics costs caused by the Middle East military conflict. Celanese: PA6/PA66 prices rise by over USD 1,000 per metric ton Effective May 1—with the largest increases in Asia Celanese announced that, due to recent market developments and global supply chain disruptions, it will raise prices for multiple engineering plastic products—including PA6/PA66, PET, and TPV—effective May 1, 2026. In Asia, PA6/PA66 prices will increase by USD 0.30–0.60 per kilogram; PET by USD 0.20–0.50 per kilogram; and TPV by USD 1.50 per kilogram. This marks Celanese’s third round of price hikes this year. Tosoh & Covestro: MDI up by USD 500–600 per ton On April 23, Japan’s Tosoh Corporation announced that, effective May 1, prices for its MDI product line will rise by more than JPY 80 per kilogram (approx. RMB 3,428 per ton). The company cited deteriorating Middle East conditions—causing instability in oil-producing countries’ supply—as well as persistent yen depreciation, pushing raw material costs beyond sustainable levels. Should raw material and energy costs continue to fluctuate sharply, Tosoh warned it may implement further adjustments. Meanwhile, Covestro also adjusted MDI pricing, with an increase of USD 600 per ton (approx. RMB 4,097 per ton). From polyethylene to MDI, from engineering plastics to plastic additives—May 1 has become a pivotal date in this wave of plastic price hikes. Price adjustments by major chemical companies have created a “price resonance” effect: the scale and breadth of increases are unprecedented in recent industry history, imposing substantial cost pressures on downstream manufacturing sectors. Transmission and spillover: Household appliances, automobiles, and daily consumer goods already feel the impact of “plastic inflation” As a foundational industrial material, plastics enjoy extremely broad application—from appliance casings and automotive bumpers to electronics packaging, PET water bottles, plastic bags, and even medical gloves and IV sets. Plastic price hikes reverberate across virtually every industrial chain.

Once suffered nearly USD 1 billion in losses! Celanese repeatedly shut down facilities—does its engineering plastics footprint accelerate its shift eastward?

USD 2.8 billion in revenue; engineering materials business turns profitable Financial results clearly reflect the initial success of Celanese’s strategic realignment. In Q2 2026, Celanese reported net sales of USD 2.8 billion—a 18% sequential increase—with volume growth of 4% and price-driven growth of 14%. Adjusted earnings per share reached USD 2.45—the highest level in three years. Consolidated operating profit stood at USD 276 million; adjusted EBIT totaled USD 470 million; and operating EBITDA reached USD 649 million—corresponding to margins of 10%, 17%, and 24%, respectively. Engineering Materials segment net sales amounted to USD 1.45 billion—a 9% sequential increase—with operating profit of USD 156 million and adjusted EBIT of USD 234 million. The Acetyl Chain segment posted net sales of USD 1.33 billion—a 28% sequential increase—and operating profit of USD 237 million. Both core segments improved simultaneously, driving overall corporate profitability recovery. Both achieved gains in both volume and price, with healthcare and electronics markets contributing sustained growth momentum. Regarding future market outlook, Celanese provided clear forward guidance: it expects adjusted EPS for Q3 to range between USD 1.35 and USD 1.75, and maintains its full-year forecast of approximately USD 6.00 in adjusted EPS and USD 700–800 million in free cash flow. Engineering Materials once incurred nearly USD 1 billion in losses In Q3 2025, Celanese’s Engineering Materials business recorded an operating loss of USD 1.327 billion, with a margin plunging to –96%. The primary cause was a non-cash impairment charge triggered by the company’s annual goodwill and intangible assets impairment test—totaling approximately USD 1.5 billion, including USD 1.1 billion in goodwill impairments mainly tied to trademarks and goodwill associated with its Zytel nylon product lines. As a result, the Engineering Materials business posted a full-year 2025 operating loss of USD 958 million. The company’s net loss for the year totaled USD 1.165 billion, with special items totaling USD 1.639 billion—of which USD 1.572 billion impacted the Engineering Materials business. This represents Celanese’s largest-ever asset impairment since its acquisition of DuPont’s M&M business. From massive loss to profitability—the turnaround occurred in Q1 2026. In Q1, the Engineering Materials business generated operating profit of USD 221 million; in Q2, it maintained profitability at USD 156 million. Two consecutive quarters of profitability mark the completion of a key phase in the business’s restructuring—directly attributable to ongoing facility shutdowns and cost-optimization initiatives. To illustrate Celanese’s global capacity contraction timeline more clearly, below is a concise summary of its facility shutdowns—six actions across three years, spanning Europe, North America, and Asia. From November 2023 through June 2026, Celanese executed six overseas production facility shutdowns or exits—covering multiple product lines including nylon 66 and engineering plastics compounding—and affecting operations in Germany, Belgium, Switzerland, Canada, Singapore, and South Korea. These six shutdowns exhibit clear patterns: beginning in Europe and progressively extending into Asia; covering product lines such as nylon 66 and engineering plastics compounding. Q2 financial disclosures indicate that the Ulsan shutdown, optimization of nylon 66 capacity, and the Lanaken shutdown are expected to yield combined annualized fixed-cost savings exceeding USD 50 million.

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