Industry News

DSM Coating Resins raises prices for its Polyester Coating Resins in Europe, Middle East and Africa as of October 1st 2006

Published on 2006-09-12. Author : SpecialChem

Zwolle,The Netherlands -- Gerben Algra, DSM Global Business Manager for Polyester Coating Resins, comments that the continuing and unprecedented price hikes for crucial feedstocks drive this latest price increase.

All main raw materials like Neo Pentyl Glycol, Terephtalic acid Isophtalic Acid, Adipic Acid and solvent feedstock like xylenes, methanol and propylene are short. The supply situation being further negatively impacted by short term maintenance stops and force majeures is a reality of the day. In addition energy costs have increased vastly over the last twelve months and are expected to rise even higher. DSM Coating Resins cannot continue to absorb these costs, as was the case during the third quarter.

As a result price increases of 0.13 €/ kg on average will be applicable for the 'Uralac' range of Polyester Powder Resins and 0.07 €/ kg on average for Liquid Polyester Resins effective October 1st 2006. Liquid Polyester Resins based on epoxy and/or solvent DBE (Di Basic Ester) are additionally impacted because both raw materials are extremely short.

Algra continues:

"Despite the current turbulence in the coating resins market, DSM remains firmly committed to further build and strengthen its leading position. In order to accommodate for the increasing global demand for polyester powder coating resins we have recently announced significant capacity extensions in Europe and China adding in total approximately 25 ktpa capacity during H2 2006."

DSM with five polyester powder resin plants and two liquid polyester resin plants is a leading global supplier of polyester coating resins. Powder Coatings are used in architectural, domestic appliance, automotive and general industrial applications. Liquid polyester resins are used as binders and additives in Industrial Coating systems for Can, Coil, Automotive and general industrial applications.

Source: DSM

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