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Article: Petchem industry faces big cost-price squeeze. (Oil Industry Progress)
- Article from:
- The Oil Daily
- Article date:
- August 27, 1990
- Author:
CopyrightCOPYRIGHT 1990 Energy Intelligence Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...