Dow Chemical to stick with higher prices

CEO Liveris says declining oil prices won’t sway chemical giant

by Tom Stundza -- Purchasing, 8/27/2008 11:46:00 AM

Dow Chemical doesn't plan to roll back its recent across the board chemical price increases despite a decline in oil prices from record highs this summer, CEO Andrew Liveris tells an CNBC interview reported by MarketWatch.

Petroleum, a prime ingredient for plastics and chemicals, has risen to record highs this year so Dow Chemical has raised its products prices twice this year by 20% and 25%. Transportation costs are likely to remain high while sales volumes have been good despite two across-the-board price hikes, Liveris told CNBC. If oil falls below $100/barrel, the company may then revisit its pricing policy, he adds.