DuPont Industrial CoatingSolutions will increase prices up to 12 percent on epoxy powder coatings and up to five percent on polyester powder coatings as of July 20, 2010. According to the company, the market is faced with an increasing imbalance between supply and demand that has brought about a rapid escalation in chemical feedstock and resin costs. The events and market conditions that are driving these increases are:
• Tight supply of phenol, epichlorohydrin (ECH) and bispenol A (BPA). Also impacted by the shutdown of some ECH and BPA production lines;
• Increase cost of feedstocks: chlorine, benzene, and propylene;
• Asia Pacific demand increase;
• Strong demand from other applications other than coatings; and
• Two force majeure notices from major suppliers in the industry due to operations issues which have severely curtailed supply.