Conflict in the Middle East

The recent events in the Middle East have thrown raw material costs into confusion.  There are talks of significant increases to freight (war surcharges, increases in fuel surcharges) and – like anything else linked to oil – polymer prices which are all increasing sharply.  We are taking a wait-and-see approach but if current indications on new material supply costs continue into April, we will need to make corresponding increases to cover these.  These polymer increases (some current indications exceed 30%) easily trigger the polymer movement clauses in our normal conditions of sale.  We will endeavour to keep you advised of what your pricing will be on an order-by-order basis with long term (> 3 months) pricing not able to be offered.

In summary, we are waiting to see what happens, but early indications are there will be major cost increases across the board starting April which we will work to minimise.  We have now moved to an order-by-order pricing model with the aim of continuing to provide our customers with best possible value for money in the turbulent environment.