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Both Reichhold and Scott Bader will be raising the price of their materials during September. Scott Bader will be increasing the prices of all Crystic unsaturated polyester, DCPD and Vinyl Ester resins, plus all gelcoats and Crystic Crestomer structural adhesives by a further 100 €/tonne on all deliveries from its European sites from September 18th 2006. Scott Bader said that this further increase is due to the continued upward surge in raw material costs during July and August, which has taken prices for certain key raw materials such as styrene, phthalic and maleic anhydride to record highs, with no signs of relief in sight. Malcolm Forsyth, European Commercial Director, Composites business division of Scott Bader stated “Under these circumstances, with such dramatic additional raw material price increases imposed on us so quickly, we have no choice but to pass on these price increases to our customers; to not do so would have serious implications on the viability of our business. However, where we can, we do look to try to work with and help our customers to minimise any negative impact on their business.” Reichhold will be making a price increase of 100 € (Euro) per metric tonne on all of its products sold to the composites industry in Europe, the Middle East and Africa. This increase is in addition to the ones announced in April and July and is effective for September shipments onward. “This increase is a needed response to the escalating cost of key raw materials, tight availability of specific key ingredients and rising fuel, energy and transportation costs,” explained Reichhold’s EMEA Vice President of Sales Alberto Piccinotti. “Reichhold is making all possible efforts to minimize the impact of raw material costs and secure the volumes required to support the growth of the composites industry. We appreciate our customers’ understanding during these rapidly changing times.” “Unfortunately no short-term improvement is forecasted, and we expect these historically high raw material costs to continue for some time,” he concluded.
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