(Dec 4 2006) Borregaard Ingredients announces a immediate 20% price increase for its vanillin and ethyl vanillin product lines. The increase is the result of significant higher costs (energy and raw materials) and imbalance between demand and supply capacity.
The shortage of vanillin is caused by a significant drop of world capacity after shut down of two major Chinese producers along with a globally increased demand. More than 2000 MT capacity has disappeared from the market this autumn. The remaining Chinese producers increased the prices for vanillin and ethyl vanillin approximately 20% in September. This has lead to a tremendous increase in demand for vanillin and ethyl vanillin from other sources.
“We are sold out the next 3 months. For users of vanillin and ethyl vanillin without contracts it will not be a question of what price they get, but what volume they will be able to source from the market” says Thomas Grys, Director of Borregaard’s vanillin business.
Prioritize long term customers and increased capacity
“We clearly want to prioritize supply to our long term customers, while we will put speed on increasing capacity to meet the surging demand”, Grys underlines.
Contact: Thomas Grys, +47 481 79 871.