Borealis to raise PE, PP prices by Euro50/tonne from 1 Sep

24 August 2001 14:28  [Source: ICIS news]

LONDON (CNI)--Danish polyolefins producer Borealis said on Friday it is to increase its polyethylene (PE) and polypropylene (PP) prices by Euro50 ($45.8)/tonne from 1 September.

Staffan Lennstrom, executive vice president for polyolefins, explained: "The unsustainable low margins that have developed for polyolefin products during the last quarters make these increases necessary to improve an unacceptable profitability level."

He claimed that the increase was driven by strong demand for polyolefins, although Lennstrom admitted Borealis has already adjusted production at a number of plants to keep stock in balance and currently has a "healthy position".

The Borealis initiative follows similar moves announced earlier this month by rivals Polimeri Europa and Basell. Polimeri and Basell plan to raise PE prices by Euro100/tonne from 1 September, while Basell has also announced a Euro75/tonne rise in PP from the same date.

Borealis is 50% owned by Norway's Statoil and 50% by IOB Holding, a 50:50 joint venture between Austria's OMV and International Petroleum Investment Co of Abu Dhabi (IPIC).

By: Russell Ong
+44 208 652 3214

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