The general situation on raw materials, packaging, energy, and transportation has continued to deteriorate significantly for the last two quarters.
A global shortage of propylene and its massive price increase had a direct impact on all our acrylic raw materials: acrylonitrile, acrylic acid, dimethylaminoethyl acrylate (ADAME). At the same time, we have suffered important allocations and Force Majeure from many suppliers.
This situation will remain the same over the next months, with planned maintenance shutdowns by several of our suppliers, in particular for ADAME, with production shutdowns of one month for Arkema and two months for BASF.
Consequently, we have decided to make a general increase of our prices, starting October 1st, 2021, order date. Any early orders with excess quantities to avoid this increase will be excluded from this principle. The increases will be as following:
Our main goal being the continuous supply of our customers, we also import products from our foreign subsidiaries but at prohibitive transportation costs (1 euro per kg from China instead of 0.20 euro per kg before the crisis). However, we had to put some industrial activities under allocation in order to ensure the supply for the de-pollution sector.
We thank you for your support in this particularly difficult period, and your SNF sales representative is available for further explanations.
General Manager, SNF sa