US-based Dow Chemical is raising prices in its polyurethane business 8-24% globally in June and July, and additional increases are likely to follow, the president of Dow Polyurethanes said on Tuesday.
We are under siege with this step-change in energy and feedstock price volatility, said Pat Dawson. The 1970s pale in comparison to what s happening in crude oil today, and it cannot be business as usual.
Crude oil prices rose by over $2 (?.28) to around $137/bbl on Tuesday afternoon, close to its record high of over $139 last week.
For June and July, Dow Polyurethanes will raise prices 14-24% in North America, 10-18% in Europe and 8-18% in Asia, depending on product and grade, said Dawson.
Asia is due for even more price increases in July that could drive up that range, however, said Doug Warner, business director for polyols in Dow Polyurethanes. This is being driven by the large spike in naphtha prices in Asia, which is coming through to propylene oxide [PO] producers. PO is being nominated right now for increases close to 20%, he said
Polyol prices will likely follow PO prices closely, Warner added.
Asian naphtha traded at a new record high of $1,149/tonne late on Monday as crude values hit the $139/bbl mark, according to global chemical market intelligence service ICIS pricing.
Naphtha traded at $1,149/tonne cost and freight (CFR) Japan between Sietco and Glencore for the second half of July contract. The contract had earlier hit a record high, trading at $1,125/tonne as Itochu sold to Mitsui Oil Asia Hong Kong two weeks earlier.
The moves in Dow Polyurethanes are in line with Dow s overall strategy to raise prices by up to 20%, which the company announced on 28 May.
Dow Polyurethanes also plans to implement surcharges for transportation and packaging of its products in July, said Dawson.
These are the only areas where we would implement surcharges - not on the products themselves, he said.
We are under siege with this step-change in energy and feedstock price volatility, said Pat Dawson. The 1970s pale in comparison to what s happening in crude oil today, and it cannot be business as usual.
Crude oil prices rose by over $2 (?.28) to around $137/bbl on Tuesday afternoon, close to its record high of over $139 last week.
For June and July, Dow Polyurethanes will raise prices 14-24% in North America, 10-18% in Europe and 8-18% in Asia, depending on product and grade, said Dawson.
Asia is due for even more price increases in July that could drive up that range, however, said Doug Warner, business director for polyols in Dow Polyurethanes. This is being driven by the large spike in naphtha prices in Asia, which is coming through to propylene oxide [PO] producers. PO is being nominated right now for increases close to 20%, he said
Polyol prices will likely follow PO prices closely, Warner added.
Asian naphtha traded at a new record high of $1,149/tonne late on Monday as crude values hit the $139/bbl mark, according to global chemical market intelligence service ICIS pricing.
Naphtha traded at $1,149/tonne cost and freight (CFR) Japan between Sietco and Glencore for the second half of July contract. The contract had earlier hit a record high, trading at $1,125/tonne as Itochu sold to Mitsui Oil Asia Hong Kong two weeks earlier.
The moves in Dow Polyurethanes are in line with Dow s overall strategy to raise prices by up to 20%, which the company announced on 28 May.
Dow Polyurethanes also plans to implement surcharges for transportation and packaging of its products in July, said Dawson.
These are the only areas where we would implement surcharges - not on the products themselves, he said.
