BASF SE focuses on expansion in China, strategic divestments, and market outlook

BASF SE announced the opening of its largest chemical complex in China, located in Zhanjiang, in late March 2026. The investment, which is in the billions of euros, signals the company’s commitment to strengthening its position in the Asian market. While the expansion is viewed as a growth opportunity, analysts have expressed skepticism about the return on investment amid global supply‑chain uncertainties.

Concurrently, BASF has been realigning its portfolio. The company has divested non‑core businesses to consolidate its core operations and secure its domestic footprint. This restructuring is intended to improve operational efficiency and support long‑term profitability.

Analysts’ views on BASF’s share performance have been mixed. Two experts recommended a buy, while two others suggested holding the shares. The average sentiment from the December 2025 period was neutral, reflecting cautious optimism about the company’s prospects.

BASF’s market capitalization stands at 39.39 billion EUR, and its price‑to‑earnings ratio is 128.22. The share price closed at 44.78 EUR on 1 January 2026. The 52‑week high reached 55.06 EUR on 5 March 2025, and the 52‑week low was 37.40 EUR on 6 April 2025.

In related market activity, BASF was named as a major player in the powder coating market, which is projected to grow significantly between 2026 and 2034. The company also appears among key participants in the fortified rice market, expected to reach USD 33.28 billion by 2032, with a CAGR of 5.85 %.

The German market opened the new calendar year with a modest rise, and the DAX index experienced a slight uptick. During the first trading day, gold and silver prices were noted for their sharp rebounds, reflecting broader market volatility.

BASF’s financial director, Elvermann, emphasized that the industrial backbone remains strong despite concerns about competitiveness and climate‑change investments. The company plans a billion‑euro share buyback program, which may support the share price following a disappointing 2025 performance.

Overall, BASF SE is pursuing a strategy of selective investment, portfolio rationalisation, and participation in high‑growth markets, while navigating a cautious investor environment.