Increased costs in raw materials have caused two chemical companies to increase the price per pound for all unsaturated polyester and vinyl ester resins. Eastman Chemical Company (NYSE:EMN) and AOS both announced a $0.04-per-pound increase, which applies to all shipments delivered on or after Feb. 9, 2004.
A release from AOC said that raw materials costs began rising in last year’s 4th quarter, and continue to rise.
"AOC can no longer absorb these increased raw material costs, driven by natural gas and crude oil costs," the release stated. "The result is costs for higher styrene, phthalic anhydride, ethylene glycol, diethylene glycol and propylene glycol. These factors are further influenced by the recovering global economy, including major users in China. The net effect of increased demand is reduced supply and tighter inventories."
AOC said that a number of factors, including crude oil and natural gas prices, record cold temperatures in many North American areas, increased transportation costs, and others have contributed to the increase.
AOC and Eastman joined Reichhold in increasing the prices of resins. Reichhold increased them earlier this week. All three companies supply raw materials to boat builders.
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