Dow Europe Announces Price Increase For Polyethylene And STYRON Polystyrene Resins

Horgen, Switzerland — Supply for polyethylene and polystyrene remains tight due to strong demand for Dow resins from converters, while high raw material and energy costs continue to pressure Dow margins. Based on this situation, Dow Europe GmbH is announcing price increases across the European region for all polyethylene and polystyrene resins.

"Energy costs rose significantly in the second half of 2005, while we saw prices for our polyethylene and polystyrene resins decline at the end of the year. This has placed significant and unsustainable pressure on our margins," said Markus Wildi, Commercial Vice President of Dow's Base Plastics portfolio in Europe, the Middle East and Africa. "We must act to restore our margins to ensure that we have a platform for reinvestment in manufacturing and innovation for our customers."

Effective immediately, Dow Europe will increase prices: by 30 Euro per metric ton for all grades of its low-density polyethylene (LDPE) resins and high-density polyethylene (HDPE) resins, DOWLEX™ polyethylene resins, ATTANE™ ultra low density polyethylene (ULDPE) copolymers, ELITE™ enhanced polyethylene resins and ASPUN™ fiber grade resins.

Additionally, effective February 1, 2006, Dow Europe will increase prices: by 120 Euro per metric ton for all grades of its low-density polyethylene (LDPE) resins and high-density polyethylene (HDPE) resins, DOWLEX polyethylene resins, ATTANE ultra low density polyethylene (ULDPE) copolymers, ELITE enhanced polyethylene resins, and ASPUN fiber grade resins, by 110 Euro per metric ton for all grades of its low-density polyethylene (LDPE) resins and high-density and by 100 Euro per metric ton for all grades of its general purpose polystyrene resins (GPPS), high impact polystyrene resins (HIPS) and STYRON A-TECH™ advanced technology polystyrene resins

SOURCE: Dow