SABIC Europe to increase May polyolefins prices in Europe

SABIC Europe (www.sabic-europe.com) announced today that it will increase prices in Europe by €100 per metric ton for its HDPE, LDPE, LLDPE products and by €50 per metric ton for its PP, effective 1st May 2006.

“Following the recent surge in oil prices to over $70 a barrel, a stepped rise in our polyolefin prices over the next few months is inevitable,” says Eric Hogenboom, Business Unit Director PP. “Although polyolefin prices have increased gradually over the last few months, the sudden steep increase of our raw material costs puts us in an unsustainable position with current polymer prices,” he continues.

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“These prices increases must be seen as a first step,” says Huub Meessen, Business Unit Director LDPE/LLDPE. ”Rather than insisting on a larger, single increase we prefer to implement a series of smaller steps to allow the entire value chain to absorb them”.

“SABIC Europe is committed to these price increases, rating European demand for polyolefins as high during the first four months of 2006. We expect this trend, which is also reflected in the Asian polyolefins market, to continue in the coming months, “Eric Hogenboom continues. “In addition, we see export opportunities for our products outside Europe being maintained at a healthy level”.

SABIC Europe BV, Sittard/Niederlande