As you may already be aware the chemical distribution sector has recently been experiencing significant interruptions to the supply chain. The composites industry is currently facing unprecedented raw material tensions following “Force Majeure” declared by major suppliers on the market. The direct consequences of this are supply shortages, longer delivery times and significant price increases for all raw materials.
Unfortunately, these particularly difficult and changing market conditions do not leave us any choice but to implement price increases on certain product ranges.
To date the main lines affected are general purpose (polyester) resins, gel coats and top coats, all other resin-based products and all polyurethane products including foam systems. We cannot rule out other products also being affected by these raw material shortages, but will advise you further should the need arise.
These supply issues have been compounded by the pandemic and Brexit delays in material movements, and at present we have several orders pending delivery to us. Some of these will now be subject to significant price movement, which is beyond our control.
We will endeavor to minimize delays and price increases, where possible, but as price increases come through, we will not be able to absorb these additional costs and will therefore be raising prices accordingly. We truly regret that this situation has arisen, and are aware that in these difficult times, price increases are the last thing you need, but are now unfortunately a necessity.
I would urge you to contact our sales team to discuss your ongoing material requirements and to ensure you are kept abreast of the price rises, which may apply to you, on a regular basis.
In addition, we encourage you to place all your forward orders with us as soon as possible to help us determine our stock needs for the coming weeks. We will make every effort to secure your requirements. However, we do not exclude the possibility of supplying only partial allocations of products even for confirmed orders, if stock supplies cannot be met, due to availability of raw materials. Prices for your forward orders may only be confirmed for deliveries up until the end of April as we may see the situation deteriorate further.
We would like to thank you for your loyalty and understanding. Everyone at Jacobson Chemicals will ensure that we do our utmost to continue to work with you through these unprecedented and difficult times.