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PCCR to Reconsider its Product Pricing Owing to Alarming Growth in Raw Material Costs

Published on 2012-02-10. Author : SpecialChem

"PCCR USA, INC. business continues to see major raw materials increase at alarming rates. With the rise of these key raw materials affecting our entire product line, we will be determining in the coming weeks what we need to do with regard to pricing our products. It is unfortunate that we are seeing these increases as they are step changes from where they were in the fourth quarter. We are doing our best to pass along information to the industry in a timely manner so that proper planning can be completed with current and accurate data," said Rod Graf, Commercial and Operations Director, PCCR USA.

The majority of raw materials are being increased by raw material suppliers in January and February. Key drivers such as energy, propylene and ethylene all have experienced significant increases in the last 60+ days, and the effect is now pouring into downstream products.

STYRENE MONOMER

  • Prices are up over 30% since the beginning of the year
  • Prices up $0.09/lb in January and another $0.08/lb in February
  • Contract Benzene Price up $1.20/gal in the last two months
  • Ethylene prices are up over $0.10/lb since early November

PHTHALIC ANHYDRIDE

  • Ortho Xylene (OX) contract prices were up $0.06 per lb in January
  • Phthalic Anhydride moves penny for penny with OX and also went up $0.06/lb
  • Closing of the Hovensa refinery in St Croix is causing large spike in aromatic prices
  • The Hovensa shutdown continues to push OX prices higher
  • OX prices are up more than an additional $0.05 per lb in the last couple weeks

PROPYLENE

  • At least two manufacturers have announced $0.22/lb increases for February
  • Acrylate monomer increase of $0.12/lb have been announced
  • Various propylene based solvents and other chemicals are significantly being increased

SOLVENTS

  • Crude oil prices up about $25 since October are pushing all energy prices higher
  • The Hovensa refinery shutdown is adding additional upside cost pressure
  • Toluene and Xylene prices are up sharply in February
  • Oxo alcohols, esters and hydrocarbon solvents are all moving up $0.05/lb or more

OTHERS

  • Epoxy has been nominated for February 15th increase by major suppliers of $0.10/lb

About PCCR USA

Using renewable resources, PCCR USA, Inc. is a leading supplier of high quality polymer resins continuing a legacy of more than 50 years producing materials for the coatings and composites industry. Their coatings specialists have years of experience developing and formulating solutions for the toughest binder and coating needs. Their composites specialists continue to set the pace using their innovative unsaturated polyester and vinyl ester resin systems

Source: PCCR, USA


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