Reichhold hikes composites products prices in NA, effective Nov 1

13 Oct '05

2 min read

Unsaturated polyester resins supplier Reichhold announced a price increase of $ 0.09 per pound for its unsaturated polyester resins and other products sold to the composites industry in North America (NA).

This increase is effective for all orders shipped on or after November 1, 2005. This is in addition to the previously announced increase which took effect October 1.

Reichhold Business Management Director Bill Schramm explains that the effects of Hurricanes Katrina and Rita have had a tremendous impact on the supply of petrochemical-based raw materials. 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.

Schramm says that while costs have continued to escalate in October and November, the petrochemical industry's ability to supply ethylene was disrupted by Hurricane Katrina. Ethylene is a major building block of several glycols which are used in many unsaturated polyester resins.

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.

It has been estimated that 60 to 70 percent of U.S. ethylene production was taken offline in preparation for Hurricane Rita, coming very shortly after the impact of Katrina. Approximately 20-30% of ethylene production remains offline. "Many petrochemical companies in the Gulf region have declared force majeure on output from their facilities in the region," Schramm points out.

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