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September 27, 2005
IBC Bottle and Washing
Price Increase
We have just received letters from our
new bottle manufacturers announcing substantial price increases on new
bottle kits effective October 1, 2005. They have also warned us that
another increase could be right around the corner and that allocation of
resin is a distinct possibility.
One such letter stated ,
in part , “As
we are all witnessing, energy costs are continuing their extraordinary
ascent. Natural gas is now commanding a market rate never before seen, and
the consequences of Hurricane Katrina are keeping petroleum prices at
unprecedented levels. As a result, high-density polyethylene (HDPE) resin
suppliers are now enacting additional price increases to offset their
escalating costs. Furthermore, the devastation to infrastructure in the
Gulf Coast area is disrupting logistical operations for HDPE suppliers.
These firms are facing challenges and constraints in receiving raw material
feedstock and delivering resin.”
Another supplier’s
letter said in part, “Due to the volatility of the present economic climate,
coupled
with the disaster of Katrina in the South, resin (HDPE) along with dramatic
increases in energy ,
has caused our HDPE suppliers to increase prices by October 1, 2005.”
We are all seeing
historic cost increases this year as well as a shortage of good raw
materials which dictates a price increase for
washed bottles as well.
The
following increase will take effect on October 1, 2005:
-
Reconditioned IBCs
(washed bottles) $3.50/unit
-
Rebottled IBCs
(275 Gallon) $9.00/unit
-
Rebottled IBCs
(330 Gallon) $10.00/unit
We
value your business and look forward to supplying your container needs in
the future.
Visit
www.myerscontainer.com for more details or contact our Customer Service
Center at 800.406.9377 if you have any questions.
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