RESEARCH TRIANGLE PARK, N.C. - Marine resins supplier and manufacturer Reichhold will raise prices $ 0.09 per pound for its unsaturated polyester resins and other products sold to the composites industry in North America effective Nov. 1, the company reported in a recent release.
This increase is in addition to the previously announced increase which took effect Oct. 1.
“The effects of Hurricanes Katrina and Rita have had a tremendous impact on the supply of petrochemical-based raw materials,” said Bill Schramm, Reichhold's business management director. “Strong demand and significantly reduced supply of these materials has further increased costs for nearly every raw material used in the production of unsaturated polyester resins.
“While costs have continued to escalate in October and November, the petrochemical industry's ability to supply ethylene was disrupted by Hurricane Katrina,” Schramm says. “Precautionary shutdowns by raw material producers in advance of Hurricane Rita caused greater than expected tightening of supply for ethylene-based products and other raw materials for unsaturated polyester resins.”
Reichhold said it has been estimated that 60 to 70 percent of U.S. ethylene production was taken offline in preparation for Hurricane Rita and that about 20-30 percent of ethylene production remains offline.
Schramm said many petrochemical companies in the Gulf region have declared force majeure on output from their facilities in the region and said that Reichhold and its suppliers have been facing sharp increases in the cost of natural gas.
But Reichhold said it does not expect its customers will experience supply interruptions during what it called “this turbulent period.”
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