MIDLAND, Mich. (May 4) — Dow Chemical Co.´s Dow Polyurethanes business unit will increase some polyurethane prices by 5 cents a pound in the U.S. and Canada effective June 1.
Included are Voranate toluene diisocyanate; Voranol, Voralux and Specflex polyether and copolymer polyols; and methylene diphenyl diisocyanate.
"Dow Polyurethanes continues to face high and volatile energy and raw material costs. Crude oil prices are currently at an all-time high of over $75 a barrelùroughly 58-percent higher than last year at this time, and industry analysts predict this upward trend will continue through 2006," said Pat Dawson, Dow business vice president, Polyurethanes and Thermoset Systems.
In addition, although a mild winter has driven down natural gas prices from their November 2005 high of $15/MM Btu, current pricing "is still triple historic levels and is continuing to impact our costs," Dawson said.
He said high gasoline prices also are "increasing the cost of key precursor materials such as propylene, benzene and toluene, which are valued as replacements for methyl tertiary-butyl etherùa chemical compound almost exclusively used as a fuel additive in gasoline." The Environmental Protection Agency recently mandated that all states switch from using MTBE to alternate additives, Dawson said.