Flexible insulation and engineering foams specialist Armacell (Luxembourg; www.armacell.com) has announced an increase in prices for parts of its product offering as a result of rising raw materials costs, strong US-dollar and rising oil prices. The company plans to implement the hikes for elastomeric insulation materials gradually.

The company pointed out that the price for butadiene – the main component of synthetic NBR caoutchouc compounds – is the most impacted. Notations for this key raw material for Armacell's elastomeric insulation materials have almost doubled since the beginning of this year (see also Plasteurope.com of 30.01.2017). According to the foam manufacturer, this development has been amplified by the stronger demand for SBR caoutchouc as a result of the current shortage of natural rubber on the commodity market. There have also been double-digit percentage increases in the prices of propellants, antioxidants and flame retardants. For flame retardants, for example, Armacell has had to accept price rises of up to 20% since October 2016, the company claimed.

"We will partially pass the increase in our raw material costs on to the market,” says Guillerme Huguen, Armacell vice president EMEA. He also adds, "further price increases will follow in the course of the year and absorb the material costs increase. Armacell will inform its customers of the price increases in good time."