US Dow announces 15-cent PC hike to buyers’ surprise
09 November 2009 22:46 [Source: ICIS news]
HOUSTON (ICIS news)--Dow Chemical said on Monday it would raise prices on polycarbonate (PC), a move buyers said has little chance of succeeding.
In a letter to customers, Dow announced it would increase prices for all of its PC resins in the
The letter did not include a reason for the increase. A Dow representative did not immediately return a call for comment.
Buyers said the letter left them wondering what the resins producer was hoping to achieve, as there was little-to-no support for an increase in a market that was settling into its seasonal end-of-year doldrums.
“I don’t think they’re going to get it,” one buyer said. “No one else is looking to make an increase, and there’s no shortage of PC on the market.”
PC was assessed at $1.25-1.35/lb during the week ended 4 November, according to global chemical market intelligence service ICIS pricing.
Competitors Bayer and SABIC Innovative Plastics have made no rumblings of increasing PC prices, market sources said.
The only buyers who might have to go along with the increase are those who are locked in to a specific specification, one trader said.
“The thing about Dow is that the material that they sell is so tightly speced in that it is often hard to replace,” the trader said. “I think that is why they feel that they can raise price without much hindrance from their customers.”
($1 = €0.67)
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By: Ben Lefebvre
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