Feedstock cost increases threaten the price of ARPRO® in Europe

Over the last few months the price of oil and its derivatives has risen relentlessly. The price of propylene, the building block for ARPRO®  has risen at an accelerated rate over the price of oil, as a consequence of demand for propylene monomer exceeding the available supply. Propylene in April 2010 is within 3% of its recent history peak in Q3 2008.

Whilst ARPRO® clearly remains a specialty product; pricing is under relentless pressure from rising feedstock (propylene) and utility costs. These are exacerbated by their inflationary impact on all other costs including employment.

The current level of demand, being far weaker than when propylene and oil were at previous highs, only serves to make the problem worse. If the current level of propylene input costs continues, we are fast approaching the point where revisions to the price of ARPRO® will be necessary.
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