MIDLAND, Mich. (Nov. 9)—Dow Chemical Co. will increase prices on all pure and polymeric methylene diphenylene isocyanate sold into all polyurethane market segments by 10 cents per pound on Dec. 1.
The company also will boost the price of its Voranol, Voralux and Specflex polyether and copolymer polyols by 10 cents a pound for all PU market segments and end-use applications.
Raw materials used in the production of MDI, polyols and precursors are in short supply and costs continue to escalate, said Chuck Reardon, North American product market manager for polyurethanes. Natural gas prices are going up, too, and the combined factors have had a negative impact on production costs and margins, he said.
Strong demand for MDI and polyols has resulted in a global shortage of MDI products and a tight supply for polyols, the company said. Dow Chemical anticipates the demand growth and tight supply will continue into 2005.
Those hikes are in addition to a surcharge on all shipments of MDI products implemented Aug. 9 to offset rising benzene costs. The half-cent surcharge is on every increase of 10 cents a gallon in benzene over the base price of $1.50 per gallon, a company spokesman said. It fluctuates monthly as the contract price of benzene moves.