Dow Europe GmbH Announces Price Increase for Polystyrene Products
Raw material and energy costs for Dow for polystyrene have steadily increased over the last few months and margins continue to be at unacceptable low levels, according to the company. As a result, Dow Europe GmbH is announcing a price increase across Europe, India, Middle East, Africa regions for all polystyrene resins. Effective June 1, 2008, where contractually possible, Dow Europe polystyrene prices will rise by 120 Euro per metric ton on all grades of general purpose polystyrene resins (GPPS) and High Impact Polystyrene resins (HIPS).
Isidro Quiroga, commercial vice president, Basic and Performance Plastics for Europe, India, Middle East and Africa commented: "The achieved Polystyrene price increases over the recent months have fallen very short of covering the cost increases. Not only have margins suffered from one month to the next, but the cumulative effect over the past months has been very large - hugely compressing the business returns which are now at very low levels. We have seen this trend continuing even further in May and must as a result announce this additional PS price increase to offset these recent cost developments as well as to move part way to restoring a minimal acceptable margin."
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