05 June 2008 12:57 [Source: ICIS news]
LONDON (ICIS news)--Rhodia Polyamide will be targeting adipic acid price increases of €100/tonne ($154/tonne) in Europe and $150/tonne in the US and Asia from 1 June on rising benzene, a company source confirmed on Thursday.
"The benzene increase has accelerated our decision since we did not recover any benzene costs in June," said the source, adding that margins were being squeezed worldwide on raw materials.
Rhodia Polyamide announced an increase of €100/tonne ($154/tonne) in Europe and $150/tonne in Asia and the US, effective 1 June.
In a press release, Rhodia said that the announcement to increase prices was to ‘help offset recent record highs in benzene costs and various key raw materials in addition to transports which have eroded margins to unsustainable level’.
Adipic acid contract prices rolled over from April to May despite a €19/tonne in the May benzene contract.
The June benzene contract settled at a staggering €858/tonne free on board (FOB) northwest Europe (NWE), up €97/tonne on May.
“The benzene hike in June has put the industry in a big squeeze,” said the Rhodia source.
($1 = €0.65)
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