AOC Increases Prices On All Products
May, 2006 : Collierville, TN, USA
AOC will increase prices by US $0.03 per pound on all products sold in the United States and Canada shipped after June 16, 2006.
AOC continues to strive for competitive and stable Unsaturated Polyester Resin pricing, but as you are aware, energy prices continue to be volatile, ever increasing and driving feedstock and operational costs higher. Crude oil prices since recovering from the 2005 hurricane season have increased from the $58 per barrel level in January 2006 to an average of over $70 per barrel in April. Natural gas prices have recovered in the past several months, but continue at levels equal to 2006 and triple that of historical averages. Complicating the situation are the feedstocks used to manufacture UPR, which are also used to make gasoline. Gasoline inventories are currently very low when compared to previous years, thereby creating a fear of shortages for the summer driving season. This effectively drove gasoline prices up nearly 70 cents per gallon, which equates to more than 10 cents per pound for those feedstocks used to produce UPR. Furthermore, the EIA (Energy Information Agency) stated recently that it is very likely that current volatility in these markets will continue to have an impact on energy and feedstock prices for an extended period of time. On May 22, 2006, NOAA forecasted a very active hurricane season for 2006, predicting 13-16 named storms, 8-10 of which becoming hurricanes and 4-6 of these evolving into major hurricanes of Category 3 or better.
AOC thanks you for your continued support and business in these unprecedented times. We value you as a customer and hope to see our excellent relationship continue to grow throughout 2006.
AOC continues to invest for the long-term growth and health of the composites industry by providing innovation and capacity to meet growing demand. The company remains committed to offering customers the best overall value in the market place.
For more information, contact Steve Martin (901) 854-2847; fax (901) 854-7277; e-mail smartin@aoc-resins.com.