02 March 2009 12:57 [Source: ICIS news]
HOUSTON (ICIS news)--Dow Chemical's proposal to increase North American oxygenated solvent rates is intended to halt price declines, a distributor said on Monday.
"I think the proposal is primarily to stop the bleeding and the expectation of lower prices at month’s end," the distributor said.
In a letter to customers dated 27 February, Dow said it was increasing prices on 55 products in its oxygenated solvents portfolio - including propionic acid, isopropanol (IPA) , butyl acetate (butac) and glycol ethers - by 4-5 cents/lb ($88-110/tonne or €70-87/tonne) effective on 1 April.
"Despite declines in demand as a result of the global economic downturn, raw material and energy costs have once again begun to rise at an accelerated pace," Dow said in the letter. "Therefore, these increases are critical to address the significant margin compression."
A Dow spokesman did not immediately return a call seeking comment.
($1 = €0.79)
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