Changes To The Market We Operate In

Blog | 16 November 2017

Here at Holchem we operate in an international market, and work with suppliers in the UK and all over the world.  Over the last 12 months raw material prices have increased and will continue to increase significantly. For example, Sodium Hydroxide being the base of many of our detergents, has doubled in price due to current market conditions in the UK. One of the main drivers being EU law forcing the closure of the Mercury Cell production facilities throughout Europe, including those in the UK.

News reports stated that the price rises were attributed to a combination of production issues, mercury cell conversions/closures and low stocks as well as as well as lack of arbitrage from the USA to import markets such as the Mediterranean.  It’s also been reported that the lack of shipments from northwest Europe, Iran and the USA have contributed to the tight situation and forced buyers to accept higher prices. Availability has also been hindered by logistics disruptions at the Kalush plant in the Ukraine. 

This is having an effect on the entire industry we operate in and all companies involved are facing up to the same pressures we are. We’ll keep you updated in any other further issues in the markets we operate in.