Update on the Raw Materials Market – April 2022

April 2022 has seen again a resurgence of pricing and supply issues within the Composites sector and further afield into most other markets. Stretched supply chains, high market demand and increased production costs continue to keep material prices at rates never previously seen across Europe and Globally. The conflict in Ukraine continues to add to an already difficult picture and Western Europe is now seeing the first tangible impacts.

Key factors in keeping material price high:

  • High demand for manufacturing, combined with reduced supply continues – there is no slack in the supply chain.
  • Oil price continues to increase – Brent Crude Oil latest price chart
  • Silica sand price has risen 15-20% which will affect the price of glass fibre.
  • Energy prices continue to rise, which increases the cost of material production.
  • There are still global shipping issues around delays and costs remain astronomically high.
  • Shortage of logistics staff and HGV drivers, especially for the transport of hazardous goods
  • Starting to see the impact of the conflict in Ukraine on transportation and restriction of some raw materials due to freight/rail sanctions.
  • Other industries are competing for the same limited supply of material.

The impact is across all resin systems and speciality chemicals, reinforcements, including glass and carbon fibre, organic peroxides, and many others.
Combined with the high European demand, the global supply chain continues to be further stretched with high demand in both the American and Asian markets. Indications are that availability and pricing issues may well continue into Q3, and forecasting is extremely difficult.

The message to Composites UK members is:

  • Plan ahead
  • Make sure your supply chain is robust to ensure you have what you need to maintain production

For more information on raw material prices for the composites sector:
Tecnon Orbichem: https://www.orbichem.com/
Independent Commodity Intelligence Services: https://www.icis.com/explore/
Composites UK Member Resources – Material Supply Information – login to the member resources area for more.