Higher oil prices have raised the costs of the plastics that go into food packaging, which are derived from crude. Dow Chemical Co., the largest U.S. chemical maker, said Sept. 15 it planned to raise prices for all plastic and chemical products because of higher raw-material and energy costs. Competitor DuPont Co. made a similar announcement three days earlier.
The dollar’s gain has helped to counter higher oil prices, which have boosted costs of running factories, transportation and plastic packaging. The price of crude on the New York Mercantile Exchange has risen 45 percent this year, prompting Wal-Mart Stores Inc., the world’s largest retailer, to introduce biodegradable, corn-based plastic packaging, the Wall Street Journal reported this week.
Source: Bloomberg.com Oct. 20, 2005.