In spite of some recent relief seen in crude oil prices, key resin raw material feedstock's including methanol and butanol have increased dramatically in price.
The effect of these feedstocks combined with downstream resin raw material supplier plant outages, has lead to a situation where we are faced with very tight supply of many major raw materials as well as significant upward movement in our raw material costs. These problems are broad based and affect some of our highest volume raw materials including butanol and butyl acetate, neopentyl glycol and pentaeyrithritol as well as a large number of critical monomers.
All product groups are affected however the greatest effect will be felt on acrylic and amino resins as well as certain alkyds, powder and liquid polyesters all of which have jumped dramatically in cost as of recently. Nuplex Resins EMEA is subsequently announcing an overall price increase of 5% for solvent-and water borne acrylics, solvent borne aminos and selected alkyds and polyesters, effective for all deliveries made after November 20th, 2006.
We want to assure our customers that we are doing everything possible to not only control these costs but also to maintain uninterrupted supply during these very difficult times.
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