Clariant targets 5% to 12% global price hikes

26 November 2007 11:11  [Source: ICIS news]

Clariant targets 5% to 12% global price hikesLONDON (ICIS news)--Swiss specialty chemical firm Clariant said on Monday it will aim for global price increases of between 5% and 12%, although the company only achieved 1% rises in the first nine months of 2007.


“Clariant finds itself in the position now, where further price increases are necessary to compensate for the high speed of raw material and energy cost rises,” the company said in a statement.


Arnd Wagner, the firm's spokesman, would not comment on which feedstock prices had increased most during the year.


“Feedstock prices have gone up 4% in 9 months and in the third-quarter increased 5%,” Wagner said.


Higher crude values and a shortage of intermediaries, which are imported from China, had pushed prices up, he said.


The company’s primary feedstocks are ethylene and ethyleneoxide.


Wagner described the 5% to 12% price increase as a “starting point”, adding: “We expect in 2008 to be able to compensate for the increase in raw materials.”


Clariant’s profits have already been hit by higher feedstock prices – its third-quarter sales were up 5% but price increases accounted for only one fifth of that.


In that quarter its operating income fell 90% to (Swfr)5m ($4.5m/€3.1m) and this was attributed to rising energy, raw material and transport costs.


Clariant is the second company in the last week to target price increases. Rhodia also announced that it would aim to secure worldwide product price increases of between 7% and 15%.


($1 = €0.67/Swfr1.10)

By: Lucy Craymer
+44 20 8652 3214

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