RESEARCH TRIANGLE PARK, N.C. – Reichhold, Inc. issued a 3 cent per pound price increase on all unsaturated polyester resins sold in North America for the composites industry, the company said in a statement yesterday. This increase is effective for all orders shipped on or after June 15.
“This increase has been necessitated by escalation of the costs of key raw materials which comprise unsaturated polyester resins due to increased and sustained crude oil prices as well as tightness of supply for ethylene and propylene and their derivatives as a result of a fire in April at the Huntsman Port Arthur, Texas, olefins manufacturing plant,” said Al Naser, Reichhold vice president of sales, composites North America. “The favorable position of natural gas relative to crude oil has also caused a shift in flexible steam cracker feedstocks resulting in reduced yields of ethylene and propylene, which further tightened supply and increased costs for ethylene and propylene derivatives. Furthermore, freight costs have continued to rise due to increased diesel fuel prices.”
“Reichhold appreciates the understanding of its customers as we work within this volatile environment,” Naser said. “We continue to invest in manufacturing upgrades along with research and development to meet the needs of customers both today and into the future.”
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