June 19, 2006
Surcharge on some antifoulings
International Paint says the continued record rise in the price of metals has now forced it to apply a surcharge on all copper-containing biocidal antifoulings.
"Copper is a key raw material used extensively in biocidal antifoulings," says Brian Smith, International Paint's Marine and Protective Coatings Commercial Director. "The amount of copper contained in these product types means that it accounts for a significant proportion of product cost."
Recent price rises have been dramatic; from $4,000 per tonne in the last quarter of 2005 to a peak of over $8,500 per tonne last month.
To date, says Smith, International Paint has largely absorbed the increases.
"Unfortunately," says Smith, "due to the severity of the increases since the start of the year, we are left with no alternative but to pass some of our additional costs onto our customers in the form of a surcharge. It is hoped that this surcharge will be a temporary measure and that the current cost of copper is a market spike driven by unprecedented strong demand and constrained supply".
With effect from July 1, 2006, the surcharge on copper based Biocidal Antifouling products will be $2.50 per liter. However, there will be no surcharge on Intersleek, International's premium, silicone based, copper-free foul release coating.