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Koatsu Gas Kogyo Raises Acetylene Price by 20%or more from January
Koatsu Gas Kogyo decided to raise the selling price of acetylene by 20% or more from the current price effective from deliveries on January 1 of 2022 due to the substantial increase in the price of carbide of raw material and delivery cost. In addition, regarding the acetylene cylinders not returned within the lease period, the company is planning to charge the users of the cylinders with effect from those delivered on April 1 of next year.
With the decreased demand for acetylene, the production cost and sales expenses of acetylene manufacturers have risen greatly. In addition, there lies a serious environment to push up the cost of auxiliary materials like acetone, replacements of the cylinders exceeding the expired mandate use limit and the hiked cost for logistics.
The company has so far been tackling to reduce the production cost by such means of consolidation of its acetylene plants to maintain a stable supply. However, as the absorption of the recent price hike of carbide is judged to be beyond its own control and efforts, the company has decided to take a means to raise the current price by more than 20%. As for the unreturned acetylene cylinders after the expiration of mandatory limit, the company is going to charge to the users.