DICKSON, Tenn.—One of North America's largest producers of zinc oxide will raise the price of the raw material compound beginning Oct. 15.
Zochem L.L.C. has said the price hike—expected to be between 3 and 5 percent for all grades of zinc oxide—is due to increased freight, supply chain, labor and COVID-19 costs. The increase also will support capital improvements at Zochem's facilities and Dickson and Brampton, Ontario.
The price increase will not affect customers currently under contract with the company, Zochem said.
"Current prices in the market are not sustainable," said Zochem CEO Ron Crittendon. "This small increase will allow Zochem to maintain the highest standards as a zinc oxide producer, while providing value to both our customers and shareholders."
Zinc oxide remains one of the most ubiquitous raw materials across an array of industries, and Zochem has been buoyed by increased sales outside of the tire, energy, and oil and gas markets—namely those in agriculture,
While about 40 percent of the total zinc oxide market (from all producers of zinc oxide) in North America goes toward the rubber tire industry, the compound also can be found in dental care, sunscreens, fertilizers, livestock feeds, over-the-counter flu remedies, vitamins, tile glazes, paints, food additives and even electronics.