Price increases follow in Katrina’s wake

KANSAS CITY, Mo., COLLIERVILLE, Tenn., COLUMBUS, Ohio – Three marine materials suppliers are planning to raise prices in the coming weeks due to supply and demand problems that have been further exacerbated with the damage caused by Hurricane Katrina, the companies reported in separate releases this week.

Cook Composites and Polymers will increase pricing by $.10 per pound on all polyester and vinyl ester products, effective for orders shipped on or after Oct. 1.
These include CCP gel coats, unsaturated polyester resins, vinyl ester products, print blockers, Xycon products and others.

Paul Colonna, CCP’s Vice President for Composites, expressed his regret for the necessity of making this price change in the face of the country’s current challenges, as well as his appreciation for the loyalty shown by CCP customers during this trying period.

“Like many other industries in the United States, CCP has been experiencing ongoing raw material difficulties in terms of pricing and availability for some time,” Colonna said. “Compounding that, Hurricane Katrina has caused plant shutdowns for a number of our suppliers with delay estimates ranging anywhere from two weeks to three months. Especially affected are maleic, propylene glycol and Ti02.

AOC said it would increase prices by US $0.10 per pound on all products sold in the U.S. and Canada shipped on or after Sept. 20, also citing the disruptions caused by Katrina. The company noted the importance of the Louisiana and Mississippi coastal area to North America’s chemical industry, and the damage caused, saying:

  • About 30 percent of U.S. oil production comes from offshore platforms in the Gulf, while the region accounts for 24 percent of the country’s natural gas output.
  • Refining capacity, already at capacity in the U.S., is reduced by 1.79 million barrels per day.
  • Crude oil and natural gas pricing was at record levels, BEFORE Katrina.
  • “There are no supply disruption issues for AOC, as we have sufficient raw material in inventory to meet customer needs,” the company wrote. “We, in concert with our vendors, initiated extra steps to make sure orders are filled. However while supply is assured, higher contract and delivery costs are the results of these events.”

    Hexion Specialty Chemicals
    The Composite Polymers business of Hexion Specialty Chemicals, Inc., will also institute a price increase of up to $0.10 per pound for all unsaturated polyester and vinyl ester resins, effective for all products shipped on, or after, Oct. 1.

    “Dramatic increases in oil and gas prices and disruptions in petrochemical production have dramatically impacted the cost of intermediate chemicals and ultimately the cost of resin,” the company wrote. “Energy costs to operate our facilities and freight costs to deliver the products also have substantially increased.”

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