American Supply of Gilsonite
Gilsonite was first founded as a supply in the United States of America by pioneers of this business in the late 1,800s. Through the years, the knowledge to apply and Gilsonite usage has been developed significantly among the US suppliers, while they have not educated the other countries neither the users enough to make a serious competition. Basically, any Gilsonite which is supplied by American suppliers has a steady quality and reliable supply since they are first movers of the market over a century and the technical knowledge is high among the US Gilsonite Sellers.
1- American Gilsonite Company, www.americangilsonite.com
2- Ziegler Chemical & Mineral Corporation, www.zieglerchemical.com
Known Black-listed Suppliers of American Gilsonite:
(No Information available)
Note: In order to submit a black-listed Gilsonite supplier to our database, solid evidence shall be provided to support the information which will be posted only after getting checked by our specialists.)
Problems for American Gilsonite supply:
– The price for American Gilsonite supply is very expensive comparing to other sources. It is a fact that their quality is superior to other origins, yet in many cases the users might not require to buy such an expensive item for their applications, but since the technical knowledge is limited, the end-buyers refuse to take the chance on other origins while the price of Gilsonite from USA keep rising, causing the end-users of Gilsonite to turn to substitute items for this special mineral.
– The American suppliers have already set up a large distribution network across the globe mostly in Europe & South America, so in many areas chances of trading the item is low and the trading market is already saturated. This prevents any new traders to wish to deal this item, making the current system uncompetitive and ineffective in some cases, such as the huge loss of market in China and South East Asia, which now purchase the American Gilsonite product second or third hand from suppliers in Japan or Malaysia instead of going to their local distributor to get better service & terms.
– American Gilsonite has lost a lot of market in Asia during the past years, making it difficult to purchase the item in the Asian countries in a decent procedure and price, since many distributors have stopped buying from the mother company.
– The US Gilsonite supply comes 50% from the American Gilsonite Company, who is an expert provider for the item. However, the company is currently under heavy debt with a relatively high interest making the company to file for Bankruptcy on 25th October 2016. Even though the demand has rejected the company prices gradually over the years, e.g. losing a huge market in Germany and Asia, they must still put up the product for sale at high prices. Management believed this practice would cover the loan return cash flow and settle the debts, which were due by May 2017; which was not the correct approach apparently.