By Liz White, UT staffMidland, Michigan-Dow Chemical Co. announced 1 Dec that it has ended force majeure and related volume allocation for propylene oxide (PO) and propylene glycols (PG). Dow declared force majeure for these products 1 Sept 2005, as a result of disruptions to transport and raw material and energy supply constraints related to Hurricanes Katrina and Rita. Despite lifting the restrictions, Antulio Borneo, commercial director for Dow Oxides & Glycols, cautioned that, “We anticipate that PO and PG products will continue to be in fairly tight supply,” in the continuing aftermath of the hurricanes, coupled now with “increased seasonal demand for PG products.” However, barring unforeseen changes in circumstances, we have recovered sufficiently from hurricane-related issues and expect to supply customers with PO and PG as before the hurricanes.” Borneo added. Dow also announced that, from 1 Jan 2006, it will increase prices for PO by $0.10 per pound in the Americas. Several factors contribute to the need for this price increase,” said Borneo, including tight supply, strong demand and high fuel, raw material and energy costs.”
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