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NITROCELLULOSE GROUP ANNOUNCES FURTHER WORLDWIDE PRICES INCREASE ON ALL INDUSTRIAL NITROCELLULOSE GRADES
06 April 2022
The Nitrocellulose Group (incorporating Nobel NC Co., Ltd. and Nitro Chemical Industries Ltd.) announces further worldwide prices increase on all industrial Nitrocellulose grades. These further increases will come into effect from April 1st, 2022 as a consequence not only of the ongoing supply chain challenges which have led to all-time high international sea freight and onward domestic transport costs, but also additional factors for 2022.
The supply chain challenges and rising costs experienced by all chemical companies over the past 18 months show no signs of losing momentum going
into 2022. Operations in 2021 had been focused on reacting to the volatile supply chain crisis which has impacted the cost of both raw materials and finished goods. The easing of such pressures cannot be anticipated at this time or in the foreseeable future.
Equally, raw material suppliers have announced significant price increases so far throughout 2022.
- Dramatic increases in raw material costs such as wood pulp and cotton linter, with surcharges added
- Dramatic increases and allocation restrictions upon the supply of Nitric Acid
- Many-fold increases in fuel and energy costs
The fluctuating crude oil price observed after the tragic conflict in Ukraine has added further volatility to major raw material prices such as solvents and Nitric Acid.
Individually, any one of these factors would require a review of pricing policy but, in combination, they represent a "perfect storm" of challenges to which the Nitrocellulose Group must respond. Consequently, the latest price increases of 20-25% will be implemented as soon as possible and the Nitrocellulose Group sales representative will be contacting you soon to discuss this in detail.
The Nitrocellulose Group shall continue to reduce the mitigation of these factors through cost-reduction and efficiency measures but given the scale of the issues, it is not possible to absorb the full effects. Your Sales Team and Distributor partners will be contacting you to discuss the effects of these changes. We remain fully committed to the long-term partnerships with our valued, customers and continue in our efforts to provide the highest level of service you have come to know and expect from the Nitrocellulose Group.
The supply chain challenges and rising costs experienced by all chemical companies over the past 18 months show no signs of losing momentum going
into 2022. Operations in 2021 had been focused on reacting to the volatile supply chain crisis which has impacted the cost of both raw materials and finished goods. The easing of such pressures cannot be anticipated at this time or in the foreseeable future.
Equally, raw material suppliers have announced significant price increases so far throughout 2022.
- Dramatic increases in raw material costs such as wood pulp and cotton linter, with surcharges added
- Dramatic increases and allocation restrictions upon the supply of Nitric Acid
- Many-fold increases in fuel and energy costs
The fluctuating crude oil price observed after the tragic conflict in Ukraine has added further volatility to major raw material prices such as solvents and Nitric Acid.
Individually, any one of these factors would require a review of pricing policy but, in combination, they represent a "perfect storm" of challenges to which the Nitrocellulose Group must respond. Consequently, the latest price increases of 20-25% will be implemented as soon as possible and the Nitrocellulose Group sales representative will be contacting you soon to discuss this in detail.
The Nitrocellulose Group shall continue to reduce the mitigation of these factors through cost-reduction and efficiency measures but given the scale of the issues, it is not possible to absorb the full effects. Your Sales Team and Distributor partners will be contacting you to discuss the effects of these changes. We remain fully committed to the long-term partnerships with our valued, customers and continue in our efforts to provide the highest level of service you have come to know and expect from the Nitrocellulose Group.
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