MACtac Europe Announces Price Increase Due to Rising Raw Material Costs

As widely known, raw materials prices are raising for several months:
• Paper pulp is nearing record level of US$ 1.000/ton. All paper suppliers have implemented price increases up to double digit and are announcing a new round.
• Crude Oil is since some months constantly above 80 US$/barrel
• PP, PE, PET & PVC resins have been increased and further evolution is expected shortly
• Most chemicals are announced to move up in the coming weeks
• The US$ has strengthened against the €, so making all raw material quoted in US$ dearer for European manufacturers

Additional events are making the requests for increase of raw materials irresistible:
• In number of industries, manufacturing capacity has been reduced in 2009 by voluntary adjustment or bankruptcies
• The crisis is clearly over in Asia and the demand for raw materials is again very strong in this region. Albeit at a smaller pace, demand is also fuelled by the economic recovery in Europe, in the US and in other parts of the World
• The Chilean earthquake early February disrupted the supply of paper pulp as this country represents ca. 8% of the world pulp production
Most of the above mentioned raw materials are so in shortage of supply and only available at new price conditions since March. Situation is currently very tight for number of specialized paper qualities, especially the ones used as liner by our industry. Several synthetics are affected in a similar way.
MACtac Europe is so forced to increase its selling prices throughout all the different ranges of products. Increase varies depending on grade.
MACtac trusts all customers will understand the current situation is leaving no other option than updating all price levels in the value chain. Despite the current situation, MACtac remains committed in offering its customers world-class products at the most competitive possible prices.