Massive rise in costs brings further price increases

Apr 06, 2022

It was back in early 2021 that commodity supplies began to tighten, accompanied by drastic price increases for many raw materials necessary for the production of construction chemical products. And the ensuing months have unfortunately seen no let-up. Quite the opposite, in fact: As a consequence of the war in Ukraine, there have been further massive price and cost increases in relation to energy, fuels, logistics and raw materials. MC-Bauchemie therefore sees itself with no choice but to also increase its prices, effective 1 May 2022.

 

The past few months have been heavily marked by a shortage of raw materials and an accompanying sharp rise in prices. Despite this, MC-Bauchemie has managed to maintain its supply capability across the entire product portfolio. The market situation became particularly strained in February of last year and has remained tight ever since. Having risen even further in recent months, prices for many basic raw materials that are essential not just for the chemical sector but also for other downstream industries, are at an all-time high. The war in Ukraine has led to further drastic price increases for oil, gas and electricity and, as a result, for fuels, logistics services and input materials, exerting a drastic impact also on the construction chemicals industry.

 

Volatile market situation means little planning security

The entire market situation is highly complex and unpredictable. The particularly energy-intensive chemical industry especially is suffering from the extreme rise in energy costs, which are ultimately linked to the price of gas and crude oil. The prices of many basic raw materials extracted from crude oil in the cracking process have more than doubled in the last 12 months, and some have even risen fourfold. For example, the price of ethylene, a basic raw material for many other feedstocks, increased by a further 25 percent in the first quarter of 2022 alone. Both the chemical sector and the downstream industries have likewise increased their prices drastically, with higher prices for logistics services and freight costs adding to the pressure. While price guarantees are often valid for one year in normal times, the half-life of such commitments today has become noticeably short. Unfortunately, with such volatility in the system, there is no planning security.

 

MC-Bauchemie announces further price increases in Germany

Unfortunately, there is currently no end in sight to this exceptional state of affairs. As the cost increases described above far exceed the price rises implemented to date, MC-Bauchemie finds itself forced to again adjust its prices in Germany in affected product categories — by up to 15 % and in some exceptional cases even more — as of 1 May 2022. Thus this internationally active construction chemicals manufacturer is maintaining its effort to keep its production base on an economically viable footing – so as to safeguard the supply of the majority of its products and continue offering its customers the level of service to which they are accustomed.

 

Due to the increased costs for transport packaging and the drastic rise in freight costs, MC will also be levying a logistics surcharge of € 0.01 per kg from 1 May 2022. This will be withdrawn again as soon as the situation permits.

 

In the coming days, affected customers will receive detailed information from their personal account managers and sales contacts about which products are involved and to what extent they are impacted.

As a consequence of the war in Ukraine, there have been further massive price and cost increases in relation to energy, fuels, logistics and raw materials. MC-Bauchemie therefore sees itself with no choice but to also in-crease its prices, effective 1 May 2022.
As a consequence of the war in Ukraine, there have been further massive price and cost increases in relation to energy, fuels, logistics and raw materials. MC-Bauchemie therefore sees itself with no choice but to also in-crease its prices, effective 1 May 2022.
© MC-Bauchemie 2022
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