Welcome to Urethanes Technology International

Dow implements MDI surcharge in North America

By David Reed, UT EditorMidland, Michigan-Effective immediately, The Dow Chemical Co. will implement a surcharge on all shipments of its MDI (methylene diphenyl diisocyanate) products in the United States and Canada, “as a result of the unprecedented high cost of benzene,” according to a 9 Aug statement.The surcharge will be $.005 cent per pound for every $0.10 per gallon increase in benzene over the base price of $1.50 per gallon, the statement indicated. The prior month’s CMAI benzene contract price settlement will be used to determine the surcharge, Dow added. For example, in July, the CMAI contract price for benzene was $3.07 per gallon, as a result the surcharge on MDI for August will be $0.08/lb (about €0.14/kg). The surcharge will remain in effect until further notice, the Dow statement added. “This surcharge will only offset a portion of the total impact that benzene cost has on Dow’s production of MDI. Natural gas, nitric acid and chlorine also greatly impact MDI production costs,” said Charles Reardon, product market manager, Dow Polyurethanes North America. “Historically, benzene prices have been approximately $1.26 per gallon, and have jumped in August to $3.75 per gallon and are projected to remain at high levels.”A strengthening global economy has made an already tight MDI supply even more so, across the globe,” he added.”

BUSINESS DIRECTORY

SEARCH FOR YOUR BUSINESS USING THE BUSINESS DIRECTORY

Over 250 UTECH exhibitors listed

Search over 250 business listings to find the companies with business solutions you need....

URETHANES TECHNOLOGY

REPORTING ON POLYURETHANES SINCE 1983

Trusted Informatoin

Urethanes Technology International has been providing business-critical information to the global polyurethanes industry since 1983

ADVERTISING & SPONSORSHIP

INVEST WISELY FOR RESULTS

Target your message, generate leads

Advertising on line and in print gives you access to an audited readership of over 6500/issue. Sponsoring conferences and events can position your firm as a thought leader.