Notice of a further surcharge increase from 3rd December 2021
In line with our previous monthly communications, the surcharge amount applicable to all orders on and from Friday 3rd December are detailed below-
- December’s increase equates to a 10p per metre (Circa 1.48%) increase to the current surcharge to be implemented from Friday 3rd December
- This is in addition to the previous 55p per metre previously communicated over the prior months
- Therefore the revised surcharge being applied to orders delivered from Friday 3rd, December, will be 65p per metre (Circa 9.81%)
Our latest market view and information is detailed below-
- The PVC market is still not expecting to reverse its course of increases in the weeks ahead, more rises have been announced in November with no sign of the trend reversing until the end of Q1 2022
- Resin prices still being driven by strong global demand, a lack of significant imported material from the USA, planned maintenance/ force majeures and rising energy and logistic costs.
- Converters have also concurred that extra volume is not available due to low availability and lack of imported materials which will continue to push price up, possibly to the end of Q1, 2022.
- As noted last month, we experienced significant capping of resin in November but managed through this without any disruption, fortunately resin stock at Duraflex is currently approaching normal levels
- UK Energy crisis continues to impact significantly with extraordinary increases still in place
- Continued strong sales demand from all sectors that we supply into e.g. Retail, Newbuild & Trade
- It is now becoming evident that resin prices will not return to anything like they were in December 2020, we are currently looking at what element of the surcharge will change to standard pricing and what element will stay as surcharge going forward, whilst also realising the standard 2022 increase to cover labour, utility, logistics and material costs.
- We will inform you of the 2022 increases during December and implement no later than the 1st of February 2022. At least this will go some way, to give some direction of price in 2022 to allow businesses to move forward.
Our next review on the surcharge will be in December, again, we thank you again for your loyalty and custom, as always, we like others, are doing everything we can to maintain a continued and stable supply chain, through some very difficult and challenging times impacted by extra ordinary circumstance around Resin, Energy and general raw material shortages.