Although the Middle East conflict is too new to fully understand the long-term economic effects, early indicators of global material shortages and rising prices due to the current closure of the Strait of Hormuz sparks serious concern for supply chain disruptions.
While the conflict is only 3 weeks in, fuel prices have surged globally and as a result, many upstream international raw material suppliers in Asia and Europe have announced significant increases with the warning of potential supply disruptions due to the conflict.
2 major domestic suppliers announce sizeable increases associated with the manufacturing and transportation of materials
The majority of chemicals used in the manufacture of sealants and adhesives are intimately tied to the energy and petrochemical markets, and as of this week, we have had 2 major domestic suppliers announce sizeable increases citing the continued escalation in costs associated with the manufacturing and transportation of materials with an effective date of April 1st, 2026. Many other suppliers have announced immediate increases on resins, polymer dispersions, specialized polymers, solvents and additives with some raw materials surging as high 30%.
As we head into the busier spring months, market volatility is expected to continue into April and May with a strong possibility of significant spillover effects. As a result, we are working diligently to proactively secure materials with hopes of outpacing and minimizing future cost increases and we will do our best to avoid potential disruptions. We will continue to monitor the situation and keep you informed with updates about any additional delays or increases as more information is made available.
We remain committed to providing you with reliable supply of our high-quality sealants and adhesives backed by industry leading service and support. The intent of this industry advisory is to keep you posted with the most current information impacting our industry to ensure your success in navigating the competitive landscape. We appreciate the confidence you hold in Everkem to partner with you through these turbulent times and thank you for your investment of trust in us.
If you have any questions or need assistance, do not hesitate to contact your Everkem sales or customer service representative at 1-800-638-3160 or through our online contact form here.
Thank you for your continued trust and partnership.