To Forcit Sweden AB’s customers and partners:
Notification of price adjustments
We are seeing a steady increase in raw material prices. Ammonia prices have risen from Q1 to Q3 by more than 40% and are expected to rise further. This extraordinary increase, we are now facing, is having an effect on all of us manufacturers and our raw material prices during the second half of the year and probably also during the beginning of the year 2022.
The effect applies to all products that contain nitrates. The price development at Ammonia is dependent on the increase we see in total energy prices. We also see a price increase on crude oil as today is up and above raw material prices before the pandemic. These price increases affect the special oils we use especially when manufacturing emulsions.
The total price impact is so significant that the effect on the manufacturing cost is affected over 1 SEK / kg. We follow the development and monitor it closely to see, where the price level goes in next quarter. However, the knowledge we have today indicates us that we need to adjust the price level somewhat during the autumn, already during quarter 3 and beginning of quarter 4. The price adjustment applies to all customers / partners, who have percentage discounts on the current price list.
The price adjustments will affect all products containing nitrates such as Kemiitti 510/610 and 810, Anfo, as well as other packaged products such as Kemix and Fordyn etc.
We hope you understand the moderate price adjustment we will need to make.
Sincerely,
Ari Kainulainen
VD
Forcit Sweden AB
ari.kainulainen@forcit.se
+46 722 000 301