Ladies and Gentlemen
We would like to inform you in advance that due to ongoing global economic challenges and rising raw material and energy costs, we are forced to make a price adjustment for our products. This will take effect on April 1, 2025.
As we've seen in the past, costs in the raw material markets are uneven, with some raw materials continuing to experience price increases. This situation is exacerbated by increased demand and global plant closures, leading to further raw material shortages. We also continue to face significant price increases in the packaging and transportation sectors.
Despite intensive efforts to keep prices stable and offset cost increases through efficiency improvements, we are forced to take this step due to the current economic conditions. Our last price adjustment in July 2022 was only partially able to offset the significant cost increases in raw materials and energy.
In order to continue offering you attractive deals in the future, we have continuously worked on cost optimization. However, internal measures are far from sufficient to offset the massive price increases. Although the situation has stabilized in some areas, this is not a general trend.
As reported by the London Metal Exchange, zinc prices are currently 16% above the January average. In recent months, we have also seen an increase in aluminum prices. Epoxy resin prices are rising again, averaging 4% above the level at the beginning of the year.
In addition to raw material costs, we are also seeing general cost increases. The Global Freightos Baltic Index shows that freight costs are currently approximately 34% higher than in January 2024. In addition, according to Eurostat, labor costs rose by a further 5.1% in the third quarter of this year, which also contributes to the increased overall costs.
We recognize that any price change is an important consideration for you and your business. Therefore, we want to assure you that this decision was not made lightly. Our goal remains to continue to ensure the high quality and value of our products and services that you have come to expect from us.
We will send you a detailed price list in good time before the new prices come into effect. Please feel free to contact me if you have any questions.
We greatly appreciate your understanding and continued partnership.
Best regards
SKE Coating Systems GmbH
Sönke Kessler
Managing Director