American Supply of Gilsonite

American Supply of Gilsonite

Gilsonite was first utilized as a supply in the United States of America, by the pioneers of this business in the late 1800s. Through the years, the knowledge of usage and applying Gilsonite has developed significantly among the US suppliers, while there’s been little research and hardly any development in other countries and even among the end-users to make a serious competition. Basically the Gilsonite that is supplied by American suppliers has a steady and reliable quality, given that US Gilsonite sellers have been top players of the market over a century, possessing high technical and practical knowledge.

Known Certified Suppliers of American Gilsonite:

  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:

– Comparing to other sources, American Gilsonite supply is exceptionally expensive. It is a fact that the quality is superior to Gilsonite from other origins, yet in many cases the users might not require such costly item for their application. However, since the technical knowledge is limited, the end-buyers may refuse to take the chance to verify other origins. While the price of US Gilsonite keeps rising, end-users are forced to turn to substitute minerals.

– By having already set up a large distribution network across the globe, and mostly in Europe & South America, American suppliers have made it extremely hard for other traders to market in the regions. This monopoly has made the current system uncompetitive and in some cases inefficient. For example further to the huge loss of market in China and South East Asia, users now purchase the American Gilsonite product second or third hand from Japanese suppliers or Malaysian traders instead of going to their local distributors, where they might get better service and terms.

– American Gilsonite has lost a lot of market in Asia during the past few years. That has made it difficult to purchase the item in the region in a decent procedure and price. This is because many distributers have stopped doing business directly with the mother company.

– The US Gilsonite supply comes mostly 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. 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 believes this practice would cover the loan return cash flow and settle the debts, which are due by May 2017.

 

References:
www.moodys.com
www.americangilsonite.com
www.zieglerchemical.com

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