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Dow raises force majeure on PO

By David Reed, UT EditorMidland, Michigan-The Dow Chemical Co announced 14 Oct. that the force majeure event declared on 17 Sep 2004, for propylene oxide (PO) and propylene glycols (PG) products from its Plaquemine, Lousiana, site has ended. But supplies remain tight and the firm’s announcement added that Dow was maintaining its order control measures and will be raising prices for some PO derivatives.The transportation-related congestion and supply issues due to Hurricane Ivan have been resolved, the firm explained. “In addition to the preparation [for] and impact of Hurricane Ivan, several factors had depleted product inventories even before Dow’s declaration of force majeure,” admitted Antulio Borneo, commercial director for Dow Oxides & Glycols. “These factors include unusual demand and industry-wide shortages for PO and PG products. Due to the combined impact of these factors and increased seasonal demand for PG products, we anticipate that a shortage of PO and PG products will continue to challenge the marketplace,” Borneo warned. Consequently, Dow says it continues to maintain the order control it announced on 9 Sep 2004, for its PO, PG and derivatives in North America.In addition, with effect from 15 Nov, Dow has announced that it will increase prices for its propylene glycol products by $0.05/lb in North America. “Several factors contribute to the need for this price increase,” said Borneo, “including short supply, [and] high fuel, raw material and energy costs.”Products included are: propylene glycol industrial (PGI), propylene glycol USP/EP (PGUSP/EP), dipropylene glycol, and dipropylene glycol LO+, Dow concluded.”

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