Article: Petchem industry faces big cost-price squeeze. (Oil Industry Progress)

Petchem Industry Faces Big Cost-Price Squeeze

Rising costs and slackening demand for their products could pinch petrochemical companies in coming months. Farther ahead, unless markets pick up, they could face a severe cost-price crunch.

As contracts with big customers expire, if markets continue their slow growth, it will be difficult for petrochemical companies to pass along higher feedstock costs via price increases for their products.

They are trying, though, as exempified by B.F. Goodrich's 2 cents a pound price rise for poly vinyl chloride (PVC) set for September 1.

Sufficient plant capacity, bordering on overcapacity, may weaken ...

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