Manufacturer hikes material prices
COLLIERVILLE, Tenn. – AOC, LLC will raise the prices on all resins, gel coats, pigments, colorants and additives for the United States, Canada and export shipments for Latin America $0.04/pound, effective for all shipments on Dec. 3, the company said in a press release yesterday.
The global demand for crude oil, continued weakening of the U.S. dollar and geopolitical issues in oil rich countries have driven crude oil prices to record levels, according to AOC.
“Almost everyday a new record high price for West Texas Intermediate as traded on the New York Mercantile Exchange occurs,” the company reported. “WTI is approaching $100 per barrel in recent days, which is a 30 percent to 40 percent increase in pricing from what was seen in the summer months. In spite of record natural gas in storage, NG is following crude oil prices up at a time of year where prices should be falling.
“These critical feedstocks, used to make the raw materials for Unsaturated Polyester Resin, have risen based on unprecedented energy demand and the trend will continue as raw material increases lag crude oil price changes.”
AOC said it’s committed to Lean Six Sigma principles and other strategies that help offset the rising costs of manufacturing unsaturated polyesters. The company continues to invest in the future of composites and cast polymers through end-use market development and new technologies for improving customers’ competitiveness in the global marketplace, it added.
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