Prices for components in the polyurethane insulation – the core of the LOGSTOR pre-insulated pipe system - continue an upward trend.
MDI is the main raw material for the PUR insulation.
The price for MDI has shown a steady increase in the last twelve months and is now around 50% higher than the same time last year.
The increase is driven by a combination of lower volume from suppliers and higher demand.
Globally, the number of suppliers are limited and standstill of plants due to maintenance has reduced the capacity and supply. At the same time, the global demand for this product is increasing.
In addition to a higher price there is in such a situation always a risk of shortage, which can lead to longer delivery times like our industry experienced with HDPE two years ago.
Polyol is the other main element in PUR insulation. From a stable price level in 2016 the development in 2017 has only been increases. It is parallel to the development for MDI, however less dramatic. The driver is a general increase in demand, whereas we for the time being see no risk in supply.
Based on this we will adjust our prices for the LOGSTOR pre-insulated pipe systems in the 3rd quarter of 2017.
We look forward to continuing a very busy high season 2017 in close cooperation with all our customers and thereby contribute to an extension of the district heating supply.
To the benefit of people as well as the environment.