Industry News

Dow Announces MDI and Polyol Price Increases

Published on 2004-05-20. Author : SpecialChem

Midland, MI - May 19, 2004 - Effective June 1, 2004, Dow will increase its prices for all Pure & Polymeric MDI products by $0.09/pound and will also increase its price for VORANOL*, VORALUX* and SPECFLEX* polyether and copolymer polyols by $0.07/pound. These price adjustments apply to all flexibles, coatings, adhesives, sealants, elastomers (CASE) and rigid market segments and end-use applications in the U.S. and Canada. This follows Dow's increase in its price for VORANATE* toluene diisocyanate product (TDI) by $0.08/pound, also effective June 1, 2004.

Continued strong demand for MDI products compounds an existing global, industry-wide tight supply situation. Industry sources indicate that high demand growth and tight supply will persist for the near future. Supply for polyether polyol products, on a global basis, continues to tighten, while demand continues to strengthen, with economic recovery.

"Global costs for light and heavy feedstocks have had a dramatic impact on our costs and our margins at Dow. In particular, the pricing of natural gas, propylene and benzene has an enormous impact on the cost to manufacture polyurethane materials," says Chuck Reardon, North American Product Market Manager. "Managing and adjusting to the continued volatility of raw materials and natural gas prices remains a challenge for Dow, the chemical industry and the customers who rely on these products."

Dow is the world's largest producer of polyether polyols, a leading producer of quality aromatic isocyanates (such as MDI and TDI) and a major supplier of propylene oxide, an essential component of polyether polyols. Dow's polyurethanes products are used in rigid foams, flexible foams, adhesives, sealants, coatings, elastomers and agrifibers, as well as many other applications.

Dow is a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets. With annual sales of $33 billion, Dow serves customers in more than 180 countries and a wide range of markets that are vital to human progress, including food, transportation, health and medicine, personal and home care, and building and construction, among others. Committed to the principles of sustainable development, Dow and its approximately 46,000 employees seek to balance economic, environmental and social responsibilities. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted.

*Trademark of The Dow Chemical Company

Source: The Dow Chemical Company

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