MOULDING CRISIS Takes Shape
Effects of the Earthquake in Chile -Update
From current indicators, the recent earthquake in Chile will have an immediate and long term effect on moulding and cut stock( boards) supply to the U.S. Major moulding manufacturers are reporting damage to manufacturing facilities, in addition to damages done to highways and ports. This will obviously affect the supply which will in turn affect the price.
Updated March 9: As of March 1 most mills were “off the market”. Mills are determining what material has been shipped and will be delivered, what was lost at the mills and what sank at the ports. The containers of material that are on the water will deliver but there is not a clear picture of which material will be available. The other material will be lost. No one knows when the mills will open again or when the roads and ports will be repaired to ship the material. Suppliers are working hard right now to get material to alternate ports. There is a possibility there will be a period 45 to 60 days from now where there will be a pause in deliveries from South America. This is a volatile and fluid situation. Prices will increase over the coming months as the supply and demand of the market dictates. We will keep you posted.
Shelly’s is working hard on your behalf to maintain a stable and adequate source of material. We are being told by all suppliers to expect some shortages of material and possible allocation of inventory. Prices are definitely going to rise. We are also being told to expect these disruptions to continue for the next 4-6 months.
Watch for additional information as it becomes available.
This entry was posted
on Monday, March 8th, 2010 at 6:39 am.