Dow, Huntsman Prices Soar
3 June 2008 Raw material and energy costs are causing dramatic price increases for Dow Chemical and Huntsman, two of the largest US chemical companies.
The International Herald Tribune reports that Dow’s prices will increase by 20%, marking the largest such increase in the company’s 111-year history.
Dow reported that it spent a total of US $8 billion on energy and hydrocarbon-based raw materials in 2002, and that level could reach $32 billion this year.
The company lashed out at US lawmakers for not helping alleviate the energy situation. "The government’s failure to develop a comprehensive energy policy is causing US industry to lose ground when it comes to global competitiveness, and our own domestic markets are now starting to see demand destruction throughout the US," Andrew Liveris, Dow chief executive, said.
Similarly, the news website www.bizjournals.com reported that US chemical company Huntsman will raise prices for all of its products by as much as 25%, and also will impose an energy surcharge across a wide range of products.
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