Tokyo – Denka Co. Ltd is increasing prices for chloroprene rubber (CR) due to a rise in production costs and the current supply and demand balance.
The price increase of ‘more than $500 or €450 per tonne’ will be effective as of 16 Aug on 'Denka Chloroprene-branded' rubbers, announced the Japanese materials supplier 2 Aug.
Denka said cost of production had increased due to a rise in the cost of raw materials and utility and that it was unable to absorb the increase entirely.
“On top of that, the CR global demand has been increasing significantly due to recovery from Covid-19 and it is impossible to cover all demand even from our existing customers,” it said.
The price hike, Denka said, will help maintain the stable supply and business continuity.