10 July 2008 13:46 [Source: ICIS news]
LONDON (ICIS news)--Dow Europe will discontinue pricing based on a market index formula for its plastic resins contracts in Europe, India, the Middle East and Africa to allow it more flexibility in setting prices, the company said on Thursday.
The affected products are low density polyethylene (LDPE), linear low density PE (LLDPE), high density PE (HDPE, polypropylene (PP) polystyrene (PS), acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN).
“Dow is taking this action as part of a series of measures to begin to partly restore eroding margins in the face of unprecedented and unforeseen increases in feedstock costs,” said Isidro Quiroga, commercial vice-president of Dow Basic Plastics for Europe, ?xml:namespace>
“Discontinuing market index formula pricing will give us more flexibility to combat the volatility of these costs, which are impossible for us to avoid because of the current volatile high feedstock environment,” he added.
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