Raw Material Costs

4th February 2021

 

Dear Customers

 

Since early November we have experienced month on month large increases on the polypropylene & steel raw material used as the base material for your brush filaments and mouldings. In fact, the prices are the highest that we have ever experienced.

 

We hold as much raw material stocks as we possibly can – but these are now exhausted, and so we have no choice but to amend our pricing position.

 

We continue to purchase the raw material as effectively as we can – but as well as pricing moving up there is a severe shortage of raw material – On our website is an email from one of the key suppliers ‘INEOS’ where they are limiting our availability of polypropylene to our filament supplier due to capacity constraints. All suppliers have a shortage of feedstocks and so are limiting supply. This shortage of supply is driving the polymer trader pricing higher than the polymer indexes. Steel prices are creeping up monthly because of losses in the steel industry and higher transport costs. Hopefully, this is a short-term situation – but at the moment this is reality.

 

Therefore, the new pricing will be an increase of £0.30/Kg on all products:

 

We will honour all orders already confirmed at the current price, unfortunately all new orders will be at the updated price.

 

As we talk to suppliers about March raw material prices it looks like further price inflation will happen – so we may have to move prices up again in March or April unfortunately.

 

Clearly this level of price increase is not a nice position – but please be assured that this is market conditions driving the inflation and not driven by any changes to what we do here at Brush Tec and rest assured we are doing everything we can to minimise the price increase. We have no doubt that this is affecting the entire brush marketplace.

 

With Best Regards,

R.Renwick

 

PP3 FM letter_Feb 2021_INEOS COMMERCIAL SERVICES UK LIMITED