The effects of the historic February storm we came to know as Uri are still with us now (June) and will likely be felt through the rest of the year. When it comes to manufacturing engineered FRP equipment for corrosion applications, the effect on everyone’s minds is resin supply, especially vinyl ester resin (VER).
Roughly 90% of the products Diamond manufactures are made with VER. It is the largest material cost component in the fabrication of FRP equipment for the corrosion industry. In many corrosion applications, there is no good replacement for VER; it’s unique properties make it irreplaceable. It’s track record of successful performance goes back to the 1950s.
Winter Storm Uri damaged a significant portion of the US’s chemical manufacturers, including those that provide chemicals for the manufacture of VER, creating a severe national shortage. While the storm’s damage to the chemical manufacturers is being repaired, the supply chain is in major disarray. In turn, the shortage is causing the price of VER to skyrocket. At this writing, the price of the VER Diamond Fiberglass has to pay has risen 62% and are expect to climb even more.
VER prices are expected to increase, but that doesn’t mean enough is available. Supply houses don’t have much VER to sell, and purchase orders for resin are being unfulfilled. Some VER is available on the spot market, which is is subject to huge price swings on a daily basis. Normally Diamond avoids buying from the spot market by entering into long term contacts with suppliers, which steadies the price Diamond pays for VER. In this challenging time Diamond Fiberglass is making every effort possible to locate VER at reasonable prices while continuing to meet delivery deadlines.
For more information contact Diamond Fiberglass (diamondfiberglass.com), Fibrex FRP Piping Systems (fibrex.com) or Diamond Services (diamondservices.com).