25 May 2004 18:26 [Source: ICIS news]
LONDON (CNI)--German chemicals giant BASF said Tuesday it is seeking to raise the European prices of ethanolamines with immediate effect or as contracts allow.
The proposed hike is Euro120/tonne for mono ethanolamine (MEA) and Euro100/tonne for di- and tri-ethanolamine (DEA/TEA).
BASF, which produces ethanolamines at Ludwigshafen, Germany, and Antwerp in Belgium, did not quantify the proposed increase in percentage terms or disclose current product prices.
It said, however, that the increase was prompted by unsatisfactory margins and higher raw material costs.
Frank Watson of global chemical price reporting and market intelligence service ICIS-LOR* told CNI that the proposed MEA hike equates to 13-14% of current prices. The planned hike for DEA would represent a rise of 12-14%, and 10-11% for TEA, he added.
BASF is thought likely to face a major struggle, however, to persuade buyers to accept the proposed increases in full.
*ICIS-LOR is part of the same publishing group as CNI.
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