16 March 2012 16:03 [Source: ICIS news]
One customer said BASF’s proposals of a 5 cent/lb ($110/tonne, €84/tonne) increase for 1 April, following its 12 cent/lb initiative for March was "reasonable," based on propylene costs.
"However, it doesn't take into consideration the difficulty our business has passing it through to the end user," the buyer added.
Dow's plan to increase April prices by 10 cents/lb after seeking 10-12 cent/lb increases for March was even less palatable, buyers said.
“Our demand is about the same as this time last year,” the buyer added, “so we haven't seen the growth we were hoping for.”
Both companies cited higher raw material costs as rationale, with BASF also attributing the increases to rising freight and energy costs.
March contracts appear to be settling at nominated levels, despite February initiatives of 10-14 cents/lb from Arkema, which had no March price proposals.
($1 = €0.76)
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