Adhesives & Sealants Headlines

Dow to Raise Prices of Solvents and Intermediates

September 17, 2003
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The Dow Chemical Co. announced that the selling prices of many of its solvents and organic intermediates will be raised effective October 1, 2003, or as otherwise allowed by contract.

Among the products that will be increased in North America are: - Butanol, n-Butyraldehyde, 2-Ethylhexanol, 2-Ethylhexoic Acid, Isobutanol, Propanol, Propionaldehyde, Propionic Acid, n-Butyl Acetate, Isobutyl Acetate, n-Propyl Acetate, Isopropyl Acetate, UCAR Ester EEP, MIBK, MIBC, Diacetone Alcohol, Isophorone and Isopropanol, which will be increased by $0.05 per pound, and - DIBK and Hexylene Glycol, which will go up by $0.06 per pound. These increases are driven by unacceptable margins and the potential for significant and sudden increases in raw material and natural gas prices beyond today's high levels. However, as the projected additional cost increases that are currently forecast have not yet occurred, Dow will implement a temporary allowance of .03 per pound on the affected products, effective October 1. This temporary allowance will be reduced as costs escalate, according to the following guidelines: For each $1.00/MM BTU increase in natural gas price from the August 2003 average price as published by CMAI, the temporary allowance will be reduced by $0.01 per pound. For each $0.015 per pound increase in chemical grade propylene price from the August 2003 average price as published by CMAI, the temporary allowance will be reduced by $0.01 per pound.

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