Raw material prices have been increasing steadily through 2004, however, recently the increases have been more dramatic and to some extent unexpected, with prices moving sharply through the summer months.

The main driver behind the increases is the restricted supply of Benzene; with styrene quarterly contract prices moving 35% in 6 months and limited capacity available in Europe, monthly contracts are now the norm.

These base raw material price increases are affecting industry across the board with steel and aluminium also seen significant increases. Energy and transport costs also continue to increase due to the continued high price level of crude oil.

As a result of the above a number of our suppliers have informed us of price increases effective from November 1st. Polyester, Reinforcements, Peroxides, along with some ancillary products have been affected by these price increases. With no signs of stability in the petrochemical industry, these are expected to continue through until the new-year.

At this moment in time it is difficult to say what the future holds beyond 2004, however, with worldwide demand predicted to rise, further increases cannot be ruled out.

We can assure you that GRPMS continues to negotiate both the price levels and the period of implementation to the best of our purchasing power; however, the current crisis is severely restricting our powers of negotiation.

If you require any further information please contact our Sales Desk.