Hercules increase paper chemicals prices in North America

Hercules Paper Technologies and Ventures announce they will initiate price increases in North America on all their paper chemicals by up to 30%, effective June 16, 2008. The focus will be on chemicals such as sizing, wet-strength and retention/drainage aids. The justification is linked to oil, natural gas and agricultural commodities which has seen many of their raw material prices increase by over 100% since last year. Hercules also point out some concerns about the availability of several key raw materials.

In addition to the price of barrel of crude oil, raw material availability is becoming a significant factor in determining raw material and final product cost and pricing. This is the case for products based on crude oil and those based on natural oils (eg palm).