Industry News

Air Products Polymers Announces Surcharge and Price Increase for Vinyl Acetate Based Emulsion Products

Published on 2007-12-05. Author : SpecialChem

LEHIGH VALLEY, Pa -- Effective 15 December 2007, Air Products Polymers, L.P. will implement a temporary methanol surcharge of $0.03 per wet pound on all prices for vinyl acetate homopolymer and copolymer, vinyl acetate ethylene copolymer, vinyl acetate vinyl chloride copolymer and vinyl acrylic based emulsions sold in the Americas region. These products are sold by the company under the Airflex®, Flexbond®, and Vinac® trademarks.

This action is driven by the sudden and dramatic increase in the cost of methanol, which is a key precursor to the basic raw materials used in the manufacture of Air Products Polymers' emulsion products. After a period of relative stability, methanol pricing has more than doubled in the past two months; with forecasts suggesting that it will reach even higher levels by early next year, and remain there for some months. Extremely tight supply and demand conditions are causing this increase in feedstock prices. The cost impact on emulsion polymer production is dramatic.

Air Products Polymers recognizes the concerns our customers may have about this surcharge. It is our intent to eliminate the surcharge when methanol market pricing returns to historical levels.

Additionally, Air Products Polymers will implement a price increase of up to 10% on the same emulsion products effective 1 January. This price adjustment, for all sales in the Americas, is necessary to offset significantly rising costs for ethylene, natural gas and transportation. Your account manager with be available to discuss the specific increase applicable to the products you purchase.

Air Products Polymers' Airflex, Flexbond, and Vinac emulsion products are used in applications including adhesives, building products, nonwovens, coatings, paper, carpet and textiles.

Air Products Polymers, L.P. is a joint venture between Air Products and Chemicals, Inc. (Allentown, Pa., NYSE:APD) and Wacker-Chemie GmbH (Munich, Germany) that manufactures and distributes latex polymers.

Source: Air Products

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