It seems that the producers may be getting sick and tired of not being able to pass exponentially rising costs on to customers. This morning, The Dow Chemical Company (NYSE: DOW) has announced that it will raise the price "OF ALL OF ITS PRODUCTS" by up to 20% as of June 1, 2008.
The actual amount of the raise is to be dependent upon exposure to rising costs in energy, feedstock, and transportation. It will also review all terms to all customers.
The company noted that energy and feedstock prices are up 42% year over year. In fact, Dow noted that its costs for these items was $8 Billion in 2002 and those costs would rise to $32 Billion this year.
In short, if you are dependent upon chemicals you better get those new orders in this week. The good news is that inflation is still low, at least that is what the Labor Department computer models want you to think.
If you think this is going to only come into play at Dow, guess again. Other chemical companies may follow suit as soon as today or tomorrow.
Jon Ogg
May 28, 2008
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
