Over the last two quarters, the massive increases in the costs of raw materials, transport and packaging have continued unabated and an end is currently not in sight.
There are still considerable shortages in the entire raw materials sector and we are doing everything in our power to secure our ability to deliver. So far, we have managed to do so to a large degree, but only by incurring considerable extra costs.
Apart from the raw material prices, which have rocketed due to numerous shortages in the supply chains of chemical raw materials and specific preliminary products, we are now having to pay several times the usual rates for sea transport.
The cost increases apply to virtually all organic pigments. The inorganic pigments are very badly affected, as are resins, binders, solvents and additives. Some suppliers have reported "Force Majeure" or "Sales Control" in the current quarter or have increased the delivery times for raw materials up to several months.
Transport and packaging costs have also increased by a two-digit percentage.
Despite intensive efforts to keep the cost increases as low as possible, the Doneck Network is also subject to this considerable inflation pressure. A further price adjustment, effective from 15/10/2021, is therefore absolutely necessary.
Photo: Fleet of Doneck trucks (Doneck Network)
