October 13, 2011
H.B. Fuller provides our customers with a Raw Material Report to help them evaluate the many factors influencing raw material cost for manufacturing adhesives. Because the world economy is increasingly interconnected, global factors increasingly shape both supply and demand of adhesive raw materials.
Our recent report summarizes key regional and global trends affecting pricing of feedstocks and raw material. Economic uncertainty continues to dominate world markets and while not stalled, economic activity and customer demand are slowing worldwide.
Historically, slowing global consumer demand reduces demand for oil and causes a drop in oil pricing—which is generally considered good news for the global economy. In fact, NYMEX crude has fallen significantly from its earlier high this year. However, the reduced crude price does not immediately translate into lower raw material cost for adhesive manufacturers due to a lag effect. And not all oil prices have fallen. Regardless, the steady shift to light feeds for ethylene production limits supply of the raw materials most sought after for adhesives which creates upwards price pressure.
These trends and the unexpected return of La Niña, which can play havoc with crop yields and other factors, are more fully explored in H.B. Fuller’s recent 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 reports are posted to our website. For North America, for Europe, Middle East, India and Africa, for Latin America, and for the Asia Pacific regions.
Global Brand Manager