Dow Europe stops market index formula pricing

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, India, Middle East and Africa, in a statement.

“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.

For more on these products visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Hilde Ovrebekk
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly