Adhesives are rising in price and the wind is entering the fast lane

According to Henkel of Germany, Henkel will raise global prices for certain products of its industrial adhesives due to rising raw material costs, with an average increase of between 10% and 25%. In an interview with reporters, the head of Henkel China said that the specific price increase will be different for different customers and different products. In addition to Henkel, the global adhesive giants such as Dow Corning, 3M, Fuller, and Rohm and Haas are interested in raising prices. The reporter learned from a number of adhesive distributors that Chinese adhesive companies are also considering raising prices by 10% to 25%. A number of domestic adhesive companies are more cautious about raising prices. They have said that although the rise in raw material prices has greatly increased the cost of enterprises, it will not pass the pressure on to the downstream, and enterprises will share part of it.
It is reported that in the past year and a half, affected by the price increase of basic chemicals such as crude oil and natural gas, the raw material cost of adhesive products such as polyurethane continues to rise; the supply of major chemicals and resin raw materials is in short supply, and the price of raw materials is also pushed up. rise. As a result, production costs for downstream products such as polyurethanes, hot melt adhesives, adhesives, sealants, lubricants, and surface treatments have increased by more than 40%. It is understood that adhesive companies such as Henkel and Huitian Rubber have stepped up their efforts to reduce the pressure of rising costs by improving their purchasing advantages and developing alternatives to new products.
The adhesive business is critical to every major business. According to Henkel's earnings report, Henkel's sales in 2010 were 15.092 billion euros, an increase of 11.2% year-on-year. Among them, the adhesive technology business unit performed the most prominently, with sales increasing by 11.8%. As the only adhesive listed company in mainland China, Huitian Rubber Industry has grown by as much as 73%. Huitian Rubber Industry announced that in 2010, total operating income increased by 73.71% over the same period of last year; operating profit increased by 80.55% over the same period of last year; total profit increased by 75.01% over the same period of last year; net profit increased by 72% over the same period of last year.




 

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