02 July 2008 18:37 [Source: ICIS news]
HOUSTON (ICIS news)--US plastic compounder A Schulman will likely increase prices again as it and other chemical companies contend with unprecedented increases in raw material costs, the company's chief executive said on Wednesday.
Schulman had announced on 13 June price hikes of up to 20% for products made by its engineered plastics and masterbatch divisions.
However, those increases will not likely be enough to offset escalating costs, said Joseph Gingo, Schulman CEO. As such, the company will likely increase prices in Europe and in North America.
So far, Schulman's first round of price increases are being accepted - if reluctantly, Gingo said.
"I don't think it is unique to A Schulman," he said. "These raw materials are rising at an unprecedented rate, and I think people just understand."
If Schulman does propose more price increases, it would do so in an environment of falling demand in North America and zero growth in Europe, Gingo said.To discuss issues facing the chemical industry go to ICIS connect
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