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03-01-2007

Euro-Moulders Launches Raw Materials Cost Index

A new Cost Index is being launched to highlight general cost fluctuations in the raw materials used by Euro-Moulders’ member companies to manufacture polyurethane car seats. The Index, the first of its kind, is an innovative move towards more transparency for customers and will provide a snapshot of the highs and lows faced by European manufacturers.

The five main components of polyurethane car seats come from the derivatives of crude oil, particularly toluene and naphtha. Not only are their prices influenced by the fluctuations in the oil price but also by a volatile supply and demand situation as these raw materials are also used for other chemical applications. Booming overseas markets and limited refining capacity in turn put pressure on availability and pricing. The Euro-Moulders Cost Index will map cost trends for these raw materials on a quarterly basis.

The data will be compiled by an independent notary to ensure that company data remains strictly confidential. Participation in the Price Index is entirely voluntary for Euro-Moulders members, as is the use of the Index. Euro-Moulders is starting this pioneering project with part of its membership, representing a majority and therefore a representative sample of the market.

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