Confusion 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 is fuel surcharges) and – like anything else linked to oil – polymer prices which are shooting up.  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 20%) are likely to easily trigger the polymer movement clause in a normal condition of sale, so 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 and we are now moving to an order by order pricing model.