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We feel obliged to inform you today about the raw material situation that has become more and more critical within the past weeks.
Some of the most important raw materials used for the organic core and mould binder production, namely MDI and furfuryl alcohol, are affected by the tense availability situation. The main reason for the FA shortage is above all the continuing improvement of environmental regulations for Chinese producers of this raw material. This in turn is resulting in a reduction of production volumes and furthermore in a shift of supply and trade flows on the world market. According to our key suppliers for MDI the shortage is mainly due to technical issues in production.
Considering this development on the market, our suppliers are presenting us with very little option when it comes to purchasing prices. Prices are rising almost daily, which of course has a significant impact on our production costs as well. After careful consideration of the above information ASK Chemicals in order to ensure our supply chain is both robust and maintained must increase your prices on the products effected by these raw materials on all deliveries after 1st of June 2017 in Europe.
Prices of customers with agreed raw material formula price agreement for no-bake and cold-box binders will be handled as usual.
As a valued customer you can rest assured ASK Chemicals in these demanding times are doing our best to supply all our customers’, and guarantee of your supplies is one of our top priorities.
Sources: *MDI: ICIS (www.icis.com) **FA: IFC (www.furan.com) / DESTATIS Federal Bureau of Statistics (www.destatis.de)