Report on the increase in raw materials in the adhesives sector

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Alicante, February 2021 – ASEFCA – Report on the increase of raw materials in the adhesives sector.

The sharp increase in the price of basic raw materials, reduced supply, transportation difficulties and rising costs have further increased the pressure on adhesives manufacturers caused by the Covid-19 pandemic.

Many suppliers are redirecting raw materials to their local markets rather than to Europe, further increasing prices.

During the year, there have been significant increases in raw materials used mainly in the manufacture of water-based glues and polyvinyl alcohol-based glues.

Specifically, in the vinyl acetate monomer (VAM) which is the most important ingredient in aqueous dispersions used in sectors such as the automotive sector, the construction sector, the furniture and woodworking industry, in the manufacture of paper and packaging materials, and also for handicrafts, i.e. self-made and hobby enthusiasts. As well as the synthetic polymer polyvinyl alcohol (PVOH), which is synthesized using vinyl acetate as a monomer, and acts as a film former, viscosity modifier, adhesive and emulsifier for the manufacture of coatings, linings, adhesives and various plastic products in different sectors.

We can point out that in this month there has been an increase of 20% in vinyl acetate monomer and 25% in polyvinyl alcohol, and it is feared that as a consequence of the anti-dumping law with China, this raw material could suffer an increase of 40% in the coming months.

In addition to the current global container shortage that has worsened the situation, causing a sharp increase in transport costs from Asia to Europe and further restricting supply to Europe.

As we move towards 2021, the problems of delays and transportation costs caused by trucking companies may become even greater.

The complex mix of increased demand, capacity and supply, coupled with a limited supply of transportation resources, is increasing market uncertainty and leading to sharp increases in commodity prices and supply difficulties.

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