Urgency grows as costs escalate - US analyst

28 May 2008 17:59  [Source: ICIS news]

HOUSTON (ICIS news)--A sense of solidarity and urgency is growing among chemical producers to address escalating costs in energy, feedstock and transportation, an analyst at a US firm said on Wednesday.

Overall, there is a "growing unwillingness among chemical producers to function as an energy shock absorber," said Kevin McCarthy, an analyst at Bank of America Securities. McCarthy made his comments in a research note.

McCarthy released the note after Dow Chemical announced that it would increase prices on all of its products by up to 20%.

Before Dow's announcement, US producer Rohm and Haas proposed a monthly surcharge meant to offset energy and raw-material costs, McCarthy said. "We do detect a growing sense of solidarity among chemical industry leaders."

In other news, German producer Evonik Industries announced plans to increase North America prices on all polyurethane additives. Evonik attributed the increase to rising costs in raw materials, energy, packaging and transportation.

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By: Al Greenwood
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