COLUMBUS, Ohio; KANSAS CITY, Mo.; and COLLIERVILLE, Tenn. – Three marine industry suppliers of resins and gelcoats have announced price increases over the past week, attributing them to the growing cost of oil, among other factors.
The Composite Polymers business of Hexion Specialty Chemicals, Inc. has increased the price of all unsaturated polyester and vinyl ester resin by $0.07 per pound effective for products shipped on or after May 1, 2008.
Cook Composites and Polymers has also reported a $0.07 per pound price increase for its gel coat, vinyl ester resin and unsaturated polyester resin (UPR) products effective on all orders shipped on or after April 28, 2008.
The company stated that the decision was based on persistent rising raw material costs as well as increases in other operational components, such as natural gas and transportation, which significantly impact the company's production costs.
"The industry has endured continued upward global market price pressures due to both the weakening US dollar and the interconnected increasing prices of oil, energy, transportation and petrochemical feed stocks," said Paul Colonna, CCP's vice president of composites. "CCP is … determined to persevere in our endeavors to counterbalance the economic pressures faced by all of us and appreciate the understanding and cooperation of our customers during these difficult times."
AOC, LLC – which announced a $0.07 price increase for U.S. customers in early March – is now raising prices by $0.07 per pound on all resins and gelcoats exported from the United States, effective for all shipments beginning April 21, 2008.
“Crude Oil (WTI) as traded on the NYMEX has reached a new milestone and is now trading in excess of $100 per barrel on a daily basis as demand continues to rise,” the company said in a statement. “Natural gas costs are also rising as NG consumption has increased and storage inventories have declined due to North America experiencing one of the coldest winters in recent times. Critical feedstocks used to make the raw materials for unsaturated polyester resin have risen, and the trend will continue as raw material increases lag Crude Oil and Natural Gas price changes.”
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