Lanxess raises price of sulphur-based products

29 February 2008 15:22  [Source: ICIS news]

LONDON (ICIS news)--Speciality chemicals group Lanxess has raised its prices for sulphur-based products by up to €15/tonne ($23/tonne) with immediate effect in response to spiralling raw material costs, the German company said on Friday.

  

Sulphuric acid and oleum prices would rise by €15/tonne ($23/tonne), while sodium bisulphite solution prices were being raised by €10/tonne.

 

“To safeguard the supply of our customers in future, we see no option but to pass on the increased raw material prices,” said Frank Michelis, product manager for sulphuric acid at Lanxess’ basic chemicals business unit.

 

The company said that price increases introduced at the end of 2007 of €30/tonne for sulphuric acid and oleum and €20/tonne for sodium bisulphite solution were unable to make up for the drastic rise in the price of raw material sulphur.

 

First-half 2008 liquid sulphur contracts had been agreed at $252-288/tonne DEL (delivered) in the Benelux, up from $92-98/tonne DEL in the second half of 2007, according to global chemical intelligence service ICIS pricing.

 

The surge in sulphur prices has occurred on the back of strong demand from Asia and North Africa and expectations of lower exports from Canada, the Middle East and the former Soviet Union in 2008.

 

Sulphuric acid and oleum are used in the manufacture of fertilizers, fibres, plastics, dyestuffs intermediates and in a large number of chemical syntheses.

 

Sodium bisulphite solution is used in the production of starch and sugar and is also used in the paper industry, for wastewater treatment and in chemical processes.

 

($1 = €0.66)

By: Rebecca Clarke
+44 20 8652 3214

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