Dow raises prices of Engage, Affinity by €80 / tonne

Horgen, Switzerland - Effective July 1, 2007 , or as contract terms allow, Dow will increase prices in Europe, Middle East, Africa and India for all grades of its Affinity polyolefin plastomers Engage polyolefin elastomers by €80 per tonne.

The only reason the company gave for the increase is that strong demand is putting the supplier under pressure. It did not refer to any increases in input costs such as raw materials or energy. It hinted that increased prices might allow it to invest in extra capacity over the long term, but did not announce any short-term measures.

“Demand for Affinity and Engage resins in Europe and around the world continue to be very strong, and this is putting Dow under tremendous pressure,” said Peter Heydasch, product director for performance elastomers & plastomers in Europe, Middle East, Africa and India. “Given these circumstances, we have to act quickly and decisively to ensure we can meet customer needs and be able to reinvest in our activities long-term.”