IHS Chemical Week

People & Business :: Energy and Feedstocks

Converters Shoulder Rising Costs; Demand Weakens

1:02 PM MDT | April 1, 2008 | Rebecca Coons

Rising feedstock and raw material costs are having a delayed effect on resin demand, as converters have been unable to pass on the entirety of increasing raw material costs down the chain, says Andrea Borruso, senior consultant, SRI Consulting (Zurich). “In early 2007 we saw no impact of high energy prices on demand. Twelve months later we are beginning to see some of the effects on a lower than expected demand growth in developed economies,” Borruso says. Increased costs were, for awhile, able to be passed down to the end product. However, as...

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