This excerpt taken from the ICI 6-K filed Mar 21, 2007.
The price volatility of some of the raw materials the Group uses could adversely affect its results of operations, cash flow and/or financial condition.
The Group uses significant amounts of various chemicals and other materials as raw materials in manufacturing its products. Prices for some of these raw materials are volatile and are affected by cyclical movements in commodity prices, availability of such raw materials, demand for a variety of products which are produced using these raw materials, levels of price competition among local and global suppliers and general economic conditions. The Groups diverse portfolio of value-added products provides some ability to pass on higher input prices to its customers, but this ability is, to a large extent, dependent on market conditions. There may be times when the Group is not able to recover increases in the cost of raw materials for some products due to weakness in demand for such products or the actions of its competitors. This could adversely affect the Groups results of operations, cash flow and/or financial condition.