October 3rd Thermal Market Update

October 3, 2017

Dear RiteMade Customers:

Effective with October paper orders, thermal paper mills have put all converters on allocation. These mills have been forced to allocate their tonnage due to a chemical supplier, Connect Chemicals in China, being located in a business park that is being temporarily shut down for environmental reasons. Connect Chemicals is the world’s largest producer of leuco dye, which is an essential component of thermal paper coating.  They expect to remain closed for at least three months, if not longer, as they modify operations to comply with environmental regulations. This shortage of leuco dye has already caused at least one major thermal paper mill to significantly reduce their output. A thermal paper shortage is very real and could last until mid-2018.

Due to RiteMade’s strong position in the market we have been given assurances that we will receive our historical averages of thermal paper purchases. RiteMade is committed to supporting the customers that have supported us through the years and want you to know that we are officially “off sale” to any new accounts. We will be able to supply all our customers with their average historical monthly volume. However, we are forced to limit orders to that historical volume to ensure that all our customers are able to service their customers. If necessary, your Dedicated Customer Service Specialist (DCSS) will be able to assist you in determining your average historical purchasing volume.

The mills are beginning to tell us to expect additional price increases before the end of the year.   It is likely they will announce these increases soon and they will be effective immediately. We will continue to update you as additional information is available and you can always find the latest market information at www.ritemade.com.

Best regards,

 

Brian Burns
Vice President & General Manager

 

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