Price Announcement - January 2025

December 20, 2024

To All Valued Customers,

As you are aware, Sequel Wire initiated a price increase on September 2, 2024, which ranged from 1% to 2.5% to the market. We shared with you the challenges in the compound market related to a critical component used in PVC plasticizer. You may recall that one of the domestic suppliers of this critical component suddenly exited the market and is no longer producing this component. The market went through a series of significant adjustments in price as work was performed to locate alternate supplies at a reasonable cost. This represented an 11% increase in the overall cost of our compounds related to this component.

The initial price increase affected all customer orders placed on September 2, 2024, and after. Since then, we have been closely monitoring raw materials to give the market time to settle out a bit in hopes that this increase would not stick. Sequel has been paying for that initial increase in cost for our compounds since August 1, 2024.

Sequel has received a second round of cost increases in the amount of an additional 10% in the overall cost of our compounds, which Sequel absorbed effective November 1, 2024. This makes our overall compound increases total 21%. We admit we were caught a bit off-guard by the magnitude of this November cost increase. Conversations with our suppliers through the past 4 months did not bear to light this magnitude of a change was coming. While we expected the price increase announced effective September 2, 2024, to cover any change received on November 1, 2024, it turns out this is not the case. Cost changes are announced from our supplier at the beginning of each calendar quarter, and thus we received this information on Tuesday, October 1, 2024.

 While the specific compound increases comprise the bulk of our current price increase, like all companies, we are not immune to the other inflationary pressures felt in today’s economy. We continue to work diligently to control these costs and as a result, control the amount of increase that we need to pass on to our customers. However, currently, we find it necessary to implement a price change to cover the cost of the increase we took November 1, 2024. Effective January 2, 2025, new orders for PVC wires will increase 2%, and XLPE wires will increase 1%. Due to the significance of the increase (collectively greater than 20%) we believe that all suppliers will be compelled to make similar decisions if they have not already done so.