February 8, 2017
Dear KIC customer,
There have been several market supply interruptions since Q4 2016. We at KIC have done our best to avoid and absorb the price increases incurred so far. Because there are now several factory shutdowns & crude feedstock shortages, with limited production capacity for Q1 and Q2, we will need to raise list pricing effective immediately (or as blanket contracts allow) by the amounts indicated below:
Glycerin, all grades: $0.05 LB
Propylene Glycol, all grades: $0.10 LB
We encourage you to contact your KIC sales representative immediately to discuss your actual purchasing needs.
This is the first time we have ever issued a formal price increase letter, and we are only doing it because our margins are very slim after many years of soft market pricing for both items.
As always, thank you for your kind business and continued support, and for the trust you place in KIC to assist with your raw material needs.
Eric Kort / Senior Vice President
Larry DeMasi / Senior Trader