Supply Chain Impact

MATERIALS INCREASE

Comments

Cost Category Q2 21 Costs

• Pulp continues to surge. Northern bleached softwood kraft pulp at highest price in 20 years. Trend continues into 2H. • Tight supply due to capacity reductions in prior years and robust demand. • PS grades seeing 15%+ inflation since the start of the year. • Polypropylene demand remains elevated. Pricing forecasted to increase above Feb. peak in June. May Consumer Demand Index up 12% from April. June estimated at $1.32 up another 10% from May. • Polyester (PET) film supply/demand imbalance - pricing rising 5-7% • Silicone pricing has climbed 15%+ since Q1. Tight supply and extremely strong demand. • Controlled release additive (CRA) industry-wide tightness has further deteriorated since early Q2 - resin shortage. • Platinum costs remain significantly above prior year. • Acrylic suppliers expected to remain on allocation into Q3 and likely through year end. • Rosin Ester and Styrenic Block Copolymers pricing are up 20%+ heading into Q3. RE & SIS short supply. • Oil (WTI) $72+ barrel, 30% + than pre-Covid. Calls for $100 oil this year. • AO, other components in extremely tight supply. • Corrugated prices are up 15%+ over prior year, projected up further. • Pallet prices are up over 15%+ over prior year. • Totes, Steel drum suppliers implemented double-digit increases. • Diesel fuel costs have increased 37%+ yoy. • TL rates have increased 8%+ ex fuel yoy; LTL inflation 7% with many carriers limiting shipments. • Tanker truck and specialized modes remain scarce. Load-to-truck ratio 5:1. • Monomers (CGP, BA & 2EHA) facing record demand and tight supply. • Major producers have increased price 20-25% in 2021.

Paper (liner/face)

Films (liner/face)

Silicone

Acrylic adhesives

Hot melt components

Packaging

Freight

Costs declining

Costs neutral

Costs up <5%

Costs up 5-9%

Costs up >10%

LEGEND:

taylor.com