Dow targets €120/tonne hike for March PE

23 February 2009 17:13  [Source: ICIS news]

LONDON (ICIS news)--Dow Chemical has announced a €120/tonne ($185/tonne) hike on all its polyethylene (PE) resins in Europe, the Middle East, Africa and India from 1 March, the company said in a statement on Monday.

The statement gave no further details but the move came hot on the heels of the new March ethylene contract settlement, which was agreed at an increase of €85/tonne on Friday 20 February. The contract was not yet fully established.

PE production was cut back in line with lower cracker operating rates in Europe, but demand was also flat.

It was too early to gauge buyers’ reactions but several had already complained of the poor state of their own markets. Food packaging was still buoyant but industrial applications were poor.

“My activity is down by 40% compared to last year,” said one large drum manufacturer. “If they carry on like this they will kill us.”

PE producers in Europe include Saudi Basic Industries Corp (SABIC), ExxonMobil, LyondellBasell, Borealis, Dow, Total Petrochemicals, INEOS Olefins and Polymers, Polimeri Europa and Repsol.

($1 = €0.78)

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By: Linda Naylor
+44 20 8652 3214

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