Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Ukraine
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
    • UTECH Europe 2021
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
April 26, 2004 12:00 AM

BASF ties prices to feedstock costs

Utech Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By David Reed, UT EditorWyandotte, Michigan-BASF Corp. has announced that it will implement a surcharge, effective 1 May, 2004, on all of its MDI (methylene diphenyl diisocyanate) and polyol products in North America, "to help absorb unprecedented cost increases in energy and feedstocks," according to a 26 April statement.The charge will be levied on a monthly basis in relation to the price of the two main feedstocks for the products: benzene and propylene, respectively. For MDI, the surcharge will be $0.005 per pound for every $0.10 per gallon increase in benzene over the base price of $1.50 per gallon, using the prior month's CMAI NAFTA benzene contract settlement, BASF stated. The monthly polyol surcharge will be $0.005 per pound for every $0.01 per pound increase in propylene over the base price of $0.20 per pound, based on the prior month's CMAI NAFTA propylene contract settlement."The price of crude oil and its derivatives benzene and propylene … has reached historically high levels," said Lawrence Berkowski, director of BASF's Urethane Chemicals business in North America. "BASF can no longer absorb the increases in the hope that costs will fall back to the levels of the 1990s."In addition, said Berkowski, growing demand spurred by a strengthening global economy has strained BASF's production capacity of MDIs and polyols, "at a time when poor profitability has curtailed the investments needed for increased production."According to Berkowski, the base price of $1.50 per gallon for benzene and $0.20 per pound for propylene are higher than the historical averages of $1.00 per gallon and $0.16 per pound, respectively. As a result, BASF is still absorbing a large part of the increase. "The surcharges represent less than 50 percent of the cost impact to BASF since we are not passing on natural gas, nitric acid, chlorine and other costs, all of which have also risen dramatically," said Berkowski.MDIs and polyols have applications in the home furnishings, construction and automotive industries, among others, BASF's statement concluded."

    Recommended for You
    Vita signs bed industry climate pledge
    Vita signs bed industry climate pledge
    huntsman castech 800
    Huntsman dosing system adds recycled filler to cast urethane
    UK competition authority raises concerns about Recticel–Carpenter deal
    UK competition authority raises concerns about Recticel–Carpenter deal
    Latest Issue
    April/May 2022 issue
    Click HERE for Free Download
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Crain Communications
    11, Ironmonger Lane
    London
    EC2V 8EY
    United Kingdom

    Editorial
    Phone +44 (0) 20 3287 5935
    Email click to send

    Customer Service
    Phone +1 313 446 0450
    Email click to send

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Ukraine
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
      • UTECH Europe 2021
    • Advertise
    • Contact Us
    • Issues
    • Subscribe