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Reichhold Announces Price Increase for Unsaturated Polyester Resins Sold in US & Canada

Published on 2004-10-25. Author : SpecialChem

Research Triangle Park, NC -- Reichhold announced a price increase of $ 0.05 per pound on all unsaturated polyester resins sold in the United States and Canada effective for orders shipped on or after November 15. This is in addition to the increase which took effect October 15.

"The seemingly non-stop escalation of crude oil prices continues to drive up raw material costs for unsaturated polyester resins," said Reichhold North American Director of Composites Product Management Bill Schramm. "After crude oil broke the $ 40 dollar-per-barrel mark, some analysts thought we might see a market correction, but that has not been the case," Schramm explained. "By the third week of October, we saw crude oil prices race past $ 55 dollars per barrel."

"Supply of crude oil for petroleum-based products such as styrene and glycols is one of the contributing factors, but a lack of refining capacity in the U.S. has a major impact as well," Schramm continued. "Many of our raw materials are also on allocation, further exacerbating the problem. At this point, we don't see any relief through the end of 2004," Schramm said.

"However, it is not only the price of oil that is driving these increases in our raw materials costs," Schramm says. "A continued strong demand for glycols and maleic anhydride are major factors as well. Availability of all unsaturated polyester resin raw materials is being limited by strong demand in North America locally, and especially China, on a global scale," Schramm explained.

Source: Reichhold

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