More chloroprene rubber hikes on the way

TOKYO—Japanese synthetic rubber suppliers Showa Denko and Tosoh Corp. have announced new price increases on chloroprene rubber—adding to a spate of recent hikes in the cost of these materials.

Showa Denko announced Jan. 25 that it was increasing CR prices globally as of Feb. 16, in addition to a previous price change on Nov. 8 for European and Asian markets. The price rise, it said, was necessary to ensure the stable supply.

The price will be increased by $400 per metric ton (18 cents per pound) or more for US-dollar-based transactions, or by €360 per ton for euro-based transactions.

The rate of increase, the company said, may differ between areas and customers and will be subject to the terms of applicable contracts.

Due to rising key material costs, the current chloroprene rubber price did not fully reflect the increases in production costs and other business circumstances, explained the company.

"We have avoided raising our prices for as long as possible, but we can no longer prolong the inevitable," said Showa Denko, in a statement similar to its November announcement.

Similarly, Tosoh also announced plans to increase prices beginning in April "to ensure stable supply."

Tosoh said it was enforcing a general price increase of $350 or €330 per metric ton for exports of its chloroprene rubber, sold under the Skyprene brand.

The price increase, Tosoh said, comes in response to "changing dynamics in the business environment and to increasing prices of raw materials."

The two companies, along with Arlanxeo, announced a round of price hikes in November. On Jan. 19, the German supplier announced plans to further increase CR prices globally.

Earlier this month, Denka Performance Elastomer L.L.C. announced it would increase prices for its Neoprene branded polychloroprene rubber that is manufactured in LaPlace, La. The company said it would raise prices by a minimum of $400 per metric ton in all markets.