Dow to raise prices on copolymer polyether polyol

06 March 2008 23:57  [Source: ICIS news]

HOUSTON (ICIS news)--Surging upstream costs have prompted Dow Chemical to step out with 10 cents/lb ($220/tonne) increases on copolymer polyether polyols (CPP) effective 1 April, the company said on Thursday.

"Although there was some improvement in prices during the fourth quarter of 2007, the continued increases and volatility of hydrocarbon, other raw materials and transport prices have made it necessary to pass these costs through to our customers," a company spokesperson said.

The company added that it was continuing to evaluate the possibility of price increases on other products in its polyurethane portfolio.

Over the past 27 months, propylene costs have risen around 30% while polyol contracts have moved up only 10%, according to data from global chemical market intelligence service ICIS pricing.

Buyers said seasonally low demand did not currently support the increase, and the anticipated rise of buying interest would be slowed by the April price hike. Most sources did acknowledge that a volatile energy complex had contributed to upward price pressure on many petrochemicals.

Dow said it was sensitive to the challenges faced by the market, but reiterated that the trickle-down effect of high olefins costs was affecting all derivative markets, and adjustments were imperative for everyone.

Polyether and polyester polyol contract rates were in a range of 92-97 cents/lb and 126-134 cents/lb, while slabstock and high resilience foams were at 113-121 cents/lb and 136-141 cents/lb, respectively, according to ICIS pricing.

ICIS pricing does not specifically track data on copolymer polyols.

For more on polyurethane materials visit ICIS chemical intelligence

By: Landon Feller
+1 713 525 2653

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