Dow Plastics Announces European Price Increase for Engineering Plastics

20-Jan-2003

Dow plastics has announced a price increase for its full portfolio of Engineering Plastics resins across Europe as a result of the worsening of the global economic environment. On February 1, 2003 Dow will raise the price of MAGNUM acrylonitrile butadiene styrene (ABS) resins, CALIBRE polycarbonate resins, PULSE engineering resins and EMERGE plastic resins by 0.28 Euro per kilogram. At the same time, the price of TYRIL styrene-acrylonitrile (SAN) resins will be raised by 0.30 Euro per kilogram.

According to Michael de Braaf, Global Product Manager for Dow Engineering Plastics, the price increases have been driven primarily by raw material considerations: "The chemical industry is under siege from a highly volatile oil and energy situation. The specter of war in the Middle East and the abrupt disruption of supply from Venezuela have driven up crude oil prices. At the same time, the price of naphtha and the U.S. natural gas liquids - ethane, propane and butane - have moved significantly higher. On its own, this dramatic upward movement in oil and energy pricing would be extremely challenging. However, when coupled with the fact that this is happening after a couple of years of severe margin compression within the chemical industry, the situation has become unsustainable," said De Braaf.

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