10 February 2011 17:28 [Source: ICIS news]
TORONTO (ICIS)--The dramatic increase in raw material costs is slowing the speed of growth in ?xml:namespace>
The group, Wiesbaden-based chemical employers association BAVC, said oil prices were at a two-year high, hovering again at the $100/bbl mark.
Rising oil prices were a key worry for the industry as more than 90% of
At the same time, world market prices for natural rubber and rare earths were also “shooting up,” the group said.
Over the course of 2010, the raw material situation had significantly worsened in many of the chemical industry’s key applications, such as plastics, fibres, detergents, paints and coatings, adhesives, building materials, and also pharmaceuticals, the group said.
“The rise in raw material costs poses a particular challenge for
BAVC said the raw material price surge was driven by the global economic recovery and in particular by
At the same time, supply curtailments in some materials – especially rare earths – had driven up prices.
Another factor was the increase in “cheap money” as central banks had increased liquidity in the wake of the economic crisis.
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