International Specialty Products (ISP) has announced plans to raise its prices by 10 per cent in response to increasing raw material and energy costs.
The increase will cover all polymers, vinyl monomers, emollients, emulsifiers, preservatives and encapsulates ISP supplies to the pharmaceutical, cosmetics, performance chemicals, oral care, agricultural and food sectors.
ISP did not respond to in-Pharmatechnologist.com’s request for specific information.
The price hike is the second increase covering compounds used by the pharmaceutical manufacturing sector that New Jersey-based ISP has announced this year.
In a press statement said: "This additional price increase is necessary due to continued material and energy cost escalation," and added that the new rates would come into effect on June 1 or as soon as existing supply contracts allow.
ISP's decision follows just a few weeks after rival chemicals supplier BASF increased its prices for active pharmaceutical ingredients (API) and drug excipients, citing materials costs as a factor.
At the time the German chemicals firm told in-Pharmatehcnologist.com that: “BASF depends on various raw materials and hence various suppliers. Such raw material prices are influenced by supply and demand, energy cost and to an increasing portion labour.”
Beyond fine chemicals
Both ISP and BASF’s comments echo those from companies in other sectors. Swiss drug ingredients supplier Lonza, for example, made similar claims during its first quarter financial results presentation last month.
The firm to Reuters that: "We were impacted by the strong Swiss franc and by rising raw material prices, which put pressure on margins, and as a result our first-half performance is expected to be weaker than last year.”
It added that: "Overall, higher sales were only partially able to compensate for currency headwinds and rising raw material prices," the group said.