The rise of raw materials prices throughout the ... - IVM Chemicals

From: AT
Send: Thursday, 30 June 2011
To: ….
Subject: FROM JANUARY 1st TO JUNE 30th 2011 THE RAW MATERIALS FOR THE WOOD COATING
SECTOR HAVE INCREASED BY 15%
Information to the sector Press
FROM JANUARY 1st TO JUNE 30th 2011 THE RAW MATERIALS FOR THE WOOD COATING SECTOR HAVE
INCREASED BY 15%
The rise of raw materials prices throughout the global chemical industry has continued.
The increases in 2011 follow those already huge of 2010 that have accounted for more than 26%
on the whole industrial sector.
All raw materials categories (solvents, glycols, oils and fatty acids or acrylic monomers ....), have
been subject to significant price increases, among which those given below stood out as
particularly significant.
Throughout 2010 and 2011, coating manufacturers have delayed price increases, depleting their
inventories and contracts at the old prices.
It is predictable, however, because of the major losses, that there will be great difficulties (or even
closedowns) for European and Italian coating manufacturers, and strong increases in the prices of
coating products for the adjustment to these unsustainable costs.
RAW MATERIALS
Price delta
January 2010- June 2011
Price delta
January - June
2011
CAUSES
Titanium Dioxide 51% 34% Strong scarcity that will continue
until 2014 due to plant
closedowns and rising of
consumptions in emerging
Countries
Nitrocellulose 49% 7,5% The closedown of a producer has
caused an imbalance between
supply and demand. In addition,
the cellulose, basic raw material, is
scarce and ever increasing.
Increases planned for the next quarter
are by 10%
Acrylic monomers 61% 15% The shortage of acrylic acid
continues, creating poor
availability of all its derivatives.
Xylene 53% 22% The sharp rise in oil and gasoline
prices have dragged up the price.
Now there are the first signs of
downsizing
Toluene 52% 31% Same as Xylene
Acetone 105% 76% The closedown of a plant for
maintenance has created a strong
disturbance in Italy. The price has
exceeded that of Northern Europe,
historically much higher.
Aliphatic Isocyanates 18% 11% The scarcity of raw materials
(HDI) generated strong increases
from the beginning of the year. By
September there will be a further increase
by 6%
MEK 167% 20% The destruction of the Japanese
plant due to the earthquake has
shaken this market already in high
tension in Europe after the closure
of a producer in 2010. We still expect
rises in prices and limited availability

RAW MATERIALS
Price delta
January 2010- June 2011
Price delta
January - June
2011
CAUSES
MIBK 110% 64% Scarce quantities. A large
manufacturer has a problem on
the production line, which
dramatically reduces the
availability. The situation is not
going to normalize soon.
Castor oil 113% 38% Strong demand from China,
speculation on the part of Indian
producers trying to maximize
profits.
Vegetable fatty acids 100% 16% They follow the trend of natural
products that are the subject of
strong speculations. Slight fall in
the next quarter.
Butyl Acetate 68% 25% Shutdowns for maintenance and
increase in basic rm (acetic acid)
have generated a progressive
price increase that is not expected
to decrease for the moment..
Adriano Teso