Rising energy costs are cited as key reasons for recent price hikes announced by major coatins firms.
DuPont Performance Coatings has increased prices for all of its products in response to increasing costs for energy and feedstocks. Businesses participating in the announcement include DuPont Original Equipment (OEM) finishes, DuPont Automotive Refinish Systems, including DuPont Industrial and Coatings Solutions, and DuPont Advanced Coatings Systems.
Price increases for DuPont OEM products will range from 12-25%, depending on specific product and existing customer contracts. The price increases were schedule to go into effect Nov. 1, with auto OEM manufacturers and suppliers of automotive OEM painted parts.
Automotive Refinish Systems products will rise by varying amounts depending on geographic region and product line. The increases will depend on the timing of previously announced increases, local raw material conditions and the magnitude of increases being experienced in transportation costs.
The Advanced Coatings Systems business unit will increase prices from four to 11%, for specific product categories in addition to increases announced in the second quarter of 2005.
BASF has also announced price increases for all segments of its North American coatings business. Effective Nov. 1, the automotive OEM and Tier Coatings Solutions business increased prices ranging from 15-25% depending on the feedstock make-up and relative price level of individual product. Its Industrial Coatings Solutions business announced an 8-12% price increase for all products including coil coatings and metal building products, effective Nov. 1. Lastly, the Refinish Coatings Solutions business increased prices effective Oct. 1 for automotive refinish products based on the specific product line and geographic factors. In the U.S.
The powder market ie experiencing the crunch too. Over the last eighteen months the powder coatings industry has experienced unprecedented price increases for all key raw materials, and indications are that prices will remain elevated and extremely volatile in the near term, according to officials at Rohm and Haas. The company said it has tried to minimize the impact on its customers by developing a global cost reduction strategy that incorporat