February 2, 2012
Dear Valued Customer,
Due to rising feedstock costs, improving global market demand, and low inventories, our resin suppliers have informed us of their intentions to implement a previously announced resin increase of $.06/lb. effective February 1st. In addition to this February increase, our suppliers have also announced another increase of $.07/lb. for March 1st which we will monitor and address at a later date.
In response to the February 1st resin increase, all new orders received on or after February 27th will be priced at a 7% increase. All orders must call for immediate delivery and shipment on or before March 30, 2012. Based on current lead-times and shortness of resin supply, Sigma Stretch Film can only accept a limited number of new orders. Sigma Stretch Film reserves the right to accept or decline all orders for any reason. Please check with your local plant location.
Orders placed at current prices will be limited to less than one month of your normal purchase levels. Pricing for orders accepted is based upon local lead-times and available resin.
We understand the stress and difficulty associated with these increases. However, the resin suppliers seem to have multiple increase attempts pending, regardless of market place dynamics. We cannot speculate on the strength or weakness of these announcements. That leaves us with no choice but to announce a corresponding film increase. To not announce now will only cause rushed implementation later with foreshortened lead times and limited availability of some items. Please rest assured that our primary focus has always been and will remain to supply and service our customers at a competitive price.
Your Sigma Stretch Film sales representative will be in contact with you to answer any of your questions and advise you of changing market conditions.