DSM announces price increase

Europe’s largest UP resins and gel coat producer, DSM Composite Resins AG, has announced a price increase on all of its resin and gel coat products of € 100.00 (Euro) per metric tonne with effect from 1st May 2007.

Gertjan de Koning, Business Director Composite Resins Europe, stated that the increase is an inevitable consequence of both the increasing price of crude oil and tight supply of specific raw materials and transportation. This has a knock-on effect on feedstocks and raw materials. This situation has further escalated with the serious supply problems of specific raw materials.

Recently the market saw the effect of an unplanned closure of feedstock supply to the isophtalic acid producers that resulted in shortages and supply restrictions. Similar problems are expected, even with planned shutdowns, in the near future due to the extreme tightness in supply and demand of the growing composites market.

“It is important that the value chain understands the gravity of the current situation”, continued de Koning, “The tightness in raw material supply, combined with higher feedstock costs, we believe, is a continuing trend. In addition the growth of the composites industry is outpacing our planned production capacity increases, leading to additional tightness in supply.”

Source : DSM

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DSM announces price increase

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