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Raw Material Prices Rise Globally in the Perfect Storm

June 29, 2011

H.B. Fuller provides our customers with a quarterly image of the Raw Material Report
Raw Material Report to help them assess the many factors that shape raw material cost for manufacturing adhesives. As the world economy becomes increasingly interconnected, H.B. Fuller and many of our customers manage their business globally. So we think it makes sense to provide a global view of adhesive raw material.

This month we launched our first Global issue of the Raw Material Report reflecting insights from our Sourcing Team representing the Americas, Europe and Asia. This report summarizes key regional and global events affecting supply, demand and pricing of feedstocks and raw material.

The most significant global trend is the steady course of steep price increases. Growing consumer demand has placed additional pressure on supply just as recent advancements in natural gas extraction have caused a fundamental shift in ethylene production, leaving less by-products available for adhesive formulation. This has created a perfect storm for prices to rise as raw material becomes scarcer.

Read more about this trend and the unintended consequences of “going green” along with supply issues snapshots for specific raw materials in H.B. Fuller’s June issue of the Global Raw Material Report. It is available for download in English here. We translate our Global Raw Material Report into multiple languages around the world. These will be posted to our Knowlege Page in all regions as they become available.

Lisa Rosenberg
Global Brand Manager

Tags: hb fuller, Raw Material Report, Adhesives,