Japanese supplier "facing difficulty of continuous and huge cost-increase in our production..."

Tokyo – Denka Co. Ltd is to raise prices for its chloroprene rubber (CR) materials by over $500 or €450 per tonne with effect from 10 May, the company has announced.

The price revision for 'Denka chloroprene' products reflects rises in the cost of producing and supplying the materials as well as the current supply/demand balance, it explained.

"We are facing difficulty of continuous and huge cost-increase in our production such as raw materials and utility, according to Denka.

"Our effort alone cannot absorb all the increasing costs although we are making the best effort to minimise it, added the company's 6 April announcement.

Denka further noted that global CR demand has been "increasing continuously and significantly”.

“It is impossible to cover all demand even from our existing customers.

“Hence we decided to increase its selling price in order to maintain the stable supply and business continuity,” it added.