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As we experienced throughout most of 2011, the costs for thermoplastic resin continued to increase during the first half of 2011.  No one has a dependable crystal ball that can forecast what the future holds regarding resin costs.  For your review, I have attached many of the 2012 letters we have received from our suppliers that include justifications for their price increase(s).  One thing is for sure and that is as long as resin suppliers continue to operate at full or near full capacity, regardless as to what happens with their feedstock costs, resin costs will at best stabilize but most likely continue an upward trend until overall demand decreases well below capacity levels.

We continue to encourage our customers to engage in annual order replenishment/blanket order agreements that allow us to lock in raw material costs for a set period of time.  Without some type of purchase agreement in place, our customers leave themselves exposed to the unpredictable world of commodity prices and more specifically, rising thermoplastic resin costs.

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– Patti Rone, Purchasing Agent

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