Elastochem Newsletter February 2011
Thursday 17th February 2011


Welcome to Elastochem's Regular Newsletter, where we endeavour to keep you updated with the latest product developments, industry news, and events that may influence your business.

In this month's issue, Elastochem welcomes onboard many new customers, updates you with some interesting industry trends, and has some important pricing information for the market.

In this edition:
  • ICO Polymers chooses Elastochem as their NZ Distributor
  • LDPE Producers Enjoy Boom Times, To The Dismay Of Local Manufactuers
  • Suppliers Pass On Increased Costs in 2011
  • Santoprene Price to Rise by USD0.20c per kg
  • ICO Polymers Roto Moulding Grades to Increase by NZD0.20c per kg
  • Freight Price Movements and On-charging
  • 2011 - Exciting Times Ahead

  • ICO Polymers chooses Elastochem as their NZ Distributor

    Elastochem is very excited to announce that as from 1st January 2011, we have become ICO Polymers' NZ distributor.

    ICO Polymers has had a long history in NZ with their acquisition of JR Courtenay, and is now part of the international A. Schulman Group.

    Following many recent changes, it has been decided by ICO Management that the best way to continue to support the extensive roto-moulding industry here in NZ, that they will concentrate on their manufacturing strengths, while delivering a competitive grade slate via the most cost-effective supply channels.

    Elastochem has worked closely with ICO Polymers in representing their Bayshore Masterbatch range to NZ's film manufacturers, and we are pleased that ICO recognised our expertise in plastics distribution and service.

    Elastochem looks forward to working closely with the roto-moulding industry, while also expanding our services with A. Schulman also. We welcome Rhian Sadler into the Elastochem family to continue to work with North Island customers, while Chris Davison will support the South Island industry.

    LDPE Producers Enjoy Boom Times, To The Dismay Of Local Manufactuers

    LDPE film converters beware, the new "Normal" regarding LDPE pricing is firmly entrenched.

    If flexible packaging converters are hoping for a reprieve from the elevated LDPE pricing, and tight supplies of 2010, they may be disappointed by the outlook given by a major US producer: "I expect we will be able to maintain [the LDPE premium] for 2011. Fundament­ally, nothing has changed; there is no significant new supply, demand remains strong and is growing, and the economy continues its recovery."

    While Elastochem offers a range of LDPE options, many manufacturers are now switching to metallocene based answers, including ExxonMobil's ENABLE and EXCEED range. We expect this technology to continue to grow, hence please discuss your requirements with James and Chris.

    Suppliers Pass On Increased Costs in 2011

    2011 has already seen many price rises across the plastics industry, and while Elastochem continues to negotiate vigorously with our suppliers, unfortunately we need to pass on some price changes.

    Elastochem is currently working on avenues to keep our domestic costs down, and the team will be contacting you regarding these initiatives and specific pricing, however there are some announcements that have already been made to the wider industry.

    Santoprene Price to Rise by USD0.20c per kg

    ExxonMobil Chemical has increased the price of Santoprene TPV grades by USD0.20c per kg.

    Bhaskar Venkatraman, South Asia Sales Manager, said that "Continuing increases in raw material costs necissitate adjusting our prices so that we can continue investing in capacity, product quality and high quality service which are critical to meet long term needs of our customers."

    Elastochem is still negotiating per specific grades, however the above will mean price changes effective from 1st April 2011.

    ICO Polymers Roto Moulding Grades to Increase by NZD0.20c per kg

    ICO Polymers have announced an increase in their roto-moulding grades. Due to the increase in polymer pricing, which has doubled in the last 18 months, the ICORENE Powders will increase by NZD0.20c per kg.

    This increase was effected as at 1st January 2011, hence Elastochem needs to pass on these costs effective from 1st March 2011.

    Rhian and Chris will be in touch with customers to discuss cost-effective ways to help minimise this increase.

    Freight Price Movements and On-charging

    Freight continues to be a major component in Elastochem's price to the market, and while we continue to negotiate with our suppliers, domestically we have seen the freight fuel levy increase by 6% this year already.

    As many customers have their own transport abilities and / or preferred partners, Elastochem will now detail freight as a separate charge on all deliveries, excluding Metro Auckland and Metro Christchurch.

    The benefit is that each customer will be able to easily identify their raw material costs and the freight component charges and analyse accordingly. Customers are welcome to continue to place orders on a Collect Basis.

    2011 - Exciting Times Ahead

    Finally the Elastochem Team wishes you an enjoyable and prosperous 2011. We are proudly NZ owned and love to see many positive developments in the NZ plastics industry already this year, and many great companies are ramping up for a successful 2011. We hope that Elastochem can assist in your success in 2011 and beyond!

    Trusted Technologies With Value from:

    • ExxonMobil Chemical
    • Santoprene® Rubber
    • Dequest® Phosphonates
    • Solutia Specialty Chemicals
    • INEOS Melamines
    • Alpha Technologies
    • Welvic PVC
    • Bayshore Industrial Masterbatch
    • ICO Polymers Compounds
    • A. Schulman Masterbatch & Engineering Plastics

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    ExxonMobil Chemical Polyolefins & Polypropylene

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    ICO Polymers & A. Schulman

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