Amtopp Stretch Film Price Increase

Here is an update to:
•             AmTopp (Industry) Increase (6% April 11th – orders placed)
•             Lead Times

Update:  AmTopp’s announced a MARKET PRICE INCREASE for 6%; April 11th due to resin price increases by resin manufacturers.  (Attached letter)
•             Orders must be placed & confirmed on or before April 8th.
•             CDI resin index did just publish and verify the March resin increase.
•             PLEASE do not wait to place covering orders –
-              Lead times will be increasing
-              There is a 2nd announced resin increase for next month --- (has a good chance of getting through)

Leading reasons for Resin Based Price Increase:  (overall the bottom line is supply & demand)
a.            Jan-Feb:  overall resin inventories are down
b.            Ethylene (feed stock) price is increasing
c.            Oil price is increasing
d.            Resin Exports increasing

Lead Times:  AmTopp wants you (our customers) to plan accordingly with orders and inventory and communicate as you see fit to your sales team & customers.
•             General current lead times are: 3-4 weeks.
•             Lead times are starting to extend with higher than normal distributor order rates.
•             Stock availability is decreasing.
•             PSB pre stretch will be most challenged item
-              Currently 3 ½ - 4 weeks and climbing!!!

This increase will certainly develop in the coming weeks (competitors, dates, amounts) ------ more updates to certainly come.

NEXT COLOR RUN:  week of April-04-2016, about 4 weeks from now (Blue and Black)

Please let me know if there is anything I can do additionally to support your business and assist with this market increase.

Certainly appreciate your business and the overall partnership!!!!!
Please note that AmTopp slightly revised our increase letter last week to reflect 6% (matching other manufacture’s letters)

A number of stretch companies selected an increase effective date of April 4th (orders placed) while AmTopp and a few others provided more support and flexibility by selecting a later effective date of April 11th (orders placed).

There is a developing belief that a 2nd increase will follow this 1st increase --- sometime in May.
Please place orders in advance to support your business and account for increasing order lead times.  We do expect the order rates to increase and lead times as well.

Thank you for your partnership.  I will provide periodic updates as this industry increase develops.

We are here to support you and your team.  This is a great time (aggravating yes) to sell existing accounts & new accounts / new business and get orders for film.  Thank you


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