Freudenberg Nonwovens To Spike Again Prices For Polyester Spunlaid

Effective February 15, 2011, Freudenberg Nonwovens will increase global prices for the spunlaid sector in consequence of the global rise on feedstock costs.

Due to damaged crops and after floods in Asia last year the industry is suffering a global supply crisis in cotton. Supply constraints resulted in global cotton prices reaching the highest level since the fiber trading started 140 years ago. A stronger demand on Polyester substituting cotton as well as low PTA inventories lead to further price hikes across the polyester chain. The markets in Asia, Europe and America are moving up steadily in prices to reflect higher feedstock costs and higher quotes from Asian suppliers.

Freudenberg Nonwovens adjusted the prices accordingly in January and shared the costs with reduced margins. “However, since costs are steadily increasing the current prices are no longer reflecting the reality of our industry. As a temporary measure all our shipments will carry a Polyester surcharge. Our customers will be informed in the next days”, explains John McNabb, Managing Director Freudenberg Spunweb North America.

In Europe, near-term PTA and PET prognosis on pricing are for a further rise in February and March. To compensate this increase internal measures will be continued. “Nevertheless, we will have to pass costs partly to our customers”, comments Dr. Marc Schmidt, Director Marketing&Sales for Tuft&Automotive segment. European customers will be informed of at least 10% price increase starting mid February.

Upstream cost pressure and a strong demand resulted in PTA prices being pushed towards a 15 year high in Asia. Lin Gow Ming explains the situation: “It is difficult to adapt prices in Asia as the region is so much diversified and every single market faces additional and many diversified challenges in terms of supply chain costs. We will inform our partners of above 10% increase range.”

Since Freudenberg lives a regional market approach, each regional marketing department will inform its customers individually asking these measures, Freudenberg Nonwovens will secure to be a global long term and reliable partner.


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