GENERAL OUTLOOK ON PRICING AS OF 07 FEBRUARY 2010

Since the downward adjustment of prices in February 2009, the petrochemical market has shown a gradual recovery of pricing in dollar terms – the strengthening of the rand has cushioned this increase allowing pricing stability in our local market.

Overseas manufacturers increased prices around October last year and followed this by a Euro140/ton increase in January. From the table below outlining the ICIS price movement of raw materials from October 2009 to February 2010, one can see that pricing pressures are now a reality for local manufacturers :

The nett result of these raw material price movements is that variable costs of polyesters have increased sharply, necessitating the following price adjustments to products :

Resins : R2.20/kg
Gelcoats : R2.50/kg

These adjustments will be effective as of 15 March 2010.

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