Raw material supply shortages lead to increased selling prices for organic binder systems
Over the last four weeks, a substantial shortage of several key raw materials has led to significant developments in raw material prices. To compensate these substantial price increases for such crucial materials like MDI or furfuryl alcohol (FA), ASK Chemicals will be increasing its selling prices for cold-box and no-bake binder systems as of June 1, 2017 in Europe.
The main drivers behind the shortage of FA are in particular stricter environmental regulations imposed on Chinese furfuryl alcohol manufacturers, which have led to a limited availability of FA on the global market. According to ASK Chemicals’ key suppliers for MDI the shortage is mainly due to technical issues in production.
ASK Chemicals is undertaking ongoing and strong efforts to optimize costs in order to offset these rapidly escalating raw material prices. However, the forthcoming price adjustment for organic binder systems is inevitable to allow ASK Chemicals and its affiliates to continue offering the high performance products and services its customers expect.