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Dear customers,

in these early days of the new year 2011 we have to come back to you and talk - again - about market situation and pricing. We consider it as our duty to keep you well informed on the situation in order to enable you to act and stay a reliable long term supplier and partner for your customers.

Unfortunately the situation on raw materials for thermal transfer ribbons has not changed and there have been several price increases especially for polyester base film - and we expect some more in 2011. After years of continuous price decrease and erosion of margins of the few manufacturers in the world, since the beginning of 2010 they see themselves confronted to a superior demand compaired to their production capacity. They use this more comfortable situation for non negotiable price increases, in order to become profitable, secure European production plants and also make future investments possible - and we can understand their position.

Price for this main component of thermal transfer ribbons will continue to rise. Our purchasing price has doubled in the last 15 months. But even this price level is not sufficient for manufacturers to consider investing into new production capacities - and prices will continue to rise !

All other components like waxes and paraffin, organic solvents and pigments have become much more expensive during the last year. The whole industry is concerned and as a TTR converter we had to accept several price increases for jumbo roll material from other TTR coaters during the last months.

But there is another subject which we want to bring to your attention - the guarantee of supply. Base-film manufacturers think that the world-wide consumption of TTR will grow by 5% for the next years. But this additional volume of much more than 100 Mio square meters of base film can not be produced. Being an active partner in this market since more than 20 years, we can rely on good relationship to our suppliers. This doesn't help us concerning price - but will be able to guarantee a reliable supply of our products corresponding to your needs in quality and quantity.

We have to offer new and higher prices to you starting from now on - but be assured that we limit the price increase to a strict minimum. Due to the probability of further price increases for raw materials we can not give any guarantee for a longer period. Our sales team will contact you in the next days and will provide you with price information valid until end of March 2011. If you need a fixed price for call-off orders for the period of one year, please ask us. We will try to support you and guarantee a price even for one year by adding a small risk percentage to our current price.

We are well aware of the fact that this situation is new for you and difficult to manage in a market where - for 25 years - prices only decreased. Today prices go up, there is no long term guarantee, and tomorrow´s price will probably be higher than today's.
In this new situation we want to continue to give you our best support. All products are available in the necessary quantities - and even more - at competitive prices and at the famous CALOR / RTT service conditions.

In 2011 we want to focus even more on standard articles - where roll production is the most efficient. During January we will have a special offer for standard stock items in our RATIO wax quality at most competitive prices. Furthermore we will propose regularly via our newsletter special lots at special conditions to you.

We wish all of you a good and successful new year 2011, we thank you for your understanding and look forward to good future co-operation with you. Please contact us for any questions you might have!

Best regards
Andreas Emonts-pohl