RESEARCH TRIANCLE PARK, N.C. - Reichhold has issued a price increase of $ 0.10 per pound for its unsaturated polyester resins and other products sold to the composites industry in North America, it reported in a press release today. This increase is effective for all orders shipped on or after October 1, 2005.
“Our industry had begun to see an escalation of raw material costs that began in July and August,” said Bill Schramm, Reichhold’s business management director. “That trend had led us to a point that we were almost certainly going to have to announce an increase for October. However, the impact which Hurricane Katrina has had on fuel prices, and other petroleum-based raw materials hastened the need for this increase.”
Supplies of all feed stocks are very tight due to production shutdowns and transportation issues. This is having an immediate effect on basic polyester raw materials such as styrene, maleic anhydride, phthalic anhydride and all glycols.
“The transportation industry has already doubled fuel surcharges, and these costs are expected to drive freight costs even higher,” Schramm said.
“The hurricane has also disrupted rail service, which will be tied up for the foreseeable future due to damage in the Gulf area,” Schramm continued. He further explained that both inbound and outbound materials for polyester manufacturers are being shipped via trucks rather than rail, increasing costs even further.
“We sincerely appreciate the understanding and patience of our customers during this very turbulent period,” Schramm said. “We are committed to meeting the needs of our customers and distributors.”
The company expects that Reichhold customers will not experience supply interruptions as a result of Hurricane Katrina’s effect on transportation and manufacturing of raw materials.
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