Leading coatings manufacturer Hempel will increase sales prices of products and solutions as raw material prices continue to escalate.
The cost of key raw materials used in the manufacturing of coatings is now significantly higher compared to the beginning of 2020 and the trend is continuing.
For example, from January 2020 to January 2021, the cost of epoxy increased by 60% in Europe, 40% in North America and 20% in North Asia (source: Technon Orbichem Epoxide Resins; Liquid Spot). In the same period, the price of zinc increased more than 16% globally, while copper prices rose more than 30% (source: London Metal Exchange).
“We’re witnessing an ongoing rise in prices for key raw materials due to increased global demand for feedstock, as well as logistic challenges. This has a heavy impact on global supply and contrib-utes to higher prices,” says Michael Hansen, Executive Vice President & Chief Commercial Officer at Hempel.
He continues: “We have made every effort to control and absorb the increases over the last 12 months. It is no longer possible for us to fully absorb the effects as raw material prices continue to rise. We have no other option than to increase the prices of products and solutions. Our focus remains on delivering value to and serving our customers across the world.”