AOC to increase its prices

COLLIERVILLE, Tenn. – AOC, a supplier of unsaturated polyester and vinyl ester resins, gel coats, colorants and additives for composites and cast polymers, will increase prices by US$0.05 per pound on all resins, gel coats and pigments in the United States and Canada shipped on or after March 15, the company said today.

Rising raw material costs have triggered the increases and AOC said it can no longer absorb these rising raw material costs, primarily driven by natural gas and crude oil costs.

Reduced supply, tighter inventories and higher costs are the net effect of increased demand, the company said.

AOC listed several factors contributing to higher raw material costs in its release, including:

  • Crude oil prices sustained above $35 per barrel, closing March 1 at $36.86
  • Natural gas prices sustained at the $6.00/mmbtu
  • Record high gasoline and diesel prices increased transportation costs
  • Increased transportation costs resulting from new DOT regulations regarding driver hours
  • Increased steel prices have increased drum costs
  • Multiple OPEC production quota reductions since the Iraq War
  • Iraq oil production is at prewar levels, but exports are still below
  • Global economic recovery increased energy consumption and prevented inventory build-up
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