Rocketry Planet

WORLD WIDE WEB — You could pay more money for AeroTech single-use rocket motors and reload kits in the coming months if you purchase them from a dealer. In an email communication to their dealers and distributors today, AeroTech announced it would be imposing a 10% surcharge immediately on all dealer and distributor orders for rocket motors and motor reloading kits. 

Citing the "increasingly limited supply" of surplus ammonium perchlorate (AP) and the "serious decline" in the quality of surplus AP, AeroTech/RCS president Gary Rosenfield indicated he hoped the situation would be a temporary one.

With high quality AP obviously at the upper end of the price scale, AeroTech's use of good quality AP from the surplus market has allowed the company to keep prices relatively stable over time.  Now, with sources of surplus AP apparently drying up, the only alternative is to seek ways to absorb the cost of purchasing the higher quality oxidizer directly from the nation's sole source manufacturer, a cost that is more than double that paid in the surplus market. 

According to the surcharge notice, the company chose a surcharge over a price increase because they believe the cost issue at this time may be temporary. The company will continue to search for a lower cost source of quality AP, however that won't solve the immediate problem the surcharge is intended to address.  The notice indicated the surcharge would continue until a lower cost quality alternative was found, or until such a time as it would become necessary to raise suggested retail prices.

What does this mean for the consumer?  As it stands, dealers will have to decide whether to eat the cost outright or pass along a portion if not all of the cost directly to the end user, however customers of the retail distribution website ValueRockets.com will probably not be affected.

Reader comments:

#1 Re: Article: Higher prices may be ahead for some rocket motors

I wonder who is using up all the AP out there...

New Ocean on 06-18-2009 10:05 PM

#2 Re: Article: Higher prices may be ahead for some rocket motors

Isn't the ramping down of the shuttle program why AP is drying up?

hognutz63 on 06-18-2009 10:19 PM

#3 Re: Article: Higher prices may be ahead for some rocket motors

Maybe it'll move motor-makers to other solid oxidizers...? Would rocketeers accept a motor with slightly lower performance, made with AN, if it were less expensive than an AP motor...?

Len_Lekx on 06-18-2009 10:23 PM

#4 Re: Article: Higher prices may be ahead for some rocket motors

Quote:

Isn't the ramping down of the shuttle program why AP is drying up?

Hi,

NO! The ramping UP of the NEW launch system (Constellation) is drying up the AP, it has THREE AP HOGS instead of 2 now, they are testing more, and other countries are switching to solids! Time to find a new oxidizer!

SpaceCowboy on 06-18-2009 11:24 PM

#5 Re: Article: Higher prices may be ahead for some rocket motors

Quote:

Time to find a new oxidizer!

Let us pray that it burns slower than bond paper.

madsen on 06-18-2009 11:34 PM

#6 Re: Article: Higher prices may be ahead for some rocket motors

No, Constellation is not drying up the supply of ammonium perchlorate. If anything, it will help to keep prices down .

AP is only made by one manufacturer in the US. The largest user of US ammonium perchlorate is the Space Shuttle RSRMs. With the shift from two RSRMs on the shuttle to just one RSRM-type motor for Ares I, the demand for AP is roughly half. Couple that with the fact that refurbishment of all three solid propellant motors for the 500 or so Minuteman III missiles is also nearing completion, and the overall demand for AP is going to drop significantly. As a result, AP prices are going up. When prices go up, spot market and surplus materials also go up and/or get scarce. That is what Aerotech is experiencing.

If Ares I starts flying on a regular basis in the future, and, if Ares V starts flying, prices may decrease as demand increases. (BTW, if Delta IV Heavy replaces Ares I, then AP costs will soar even higher, as there will be much less demand for AP - so hobby rocketeers will be directly affected by the outcome of the Augustine commission and their recommendations).

Most of the foreign users of AP buy or make their AP overseas, so their flight rate and use have no effect on US AP prices. As a general rule, AP is not imported or exported as a commodity.

Matt

Manofsteele on 06-19-2009 12:13 AM

#7 Re: Article: Higher prices may be ahead for some rocket motors

Quote:

Let us pray that it burns slower than bond paper.

Hi,

BOND PAPER!!!!! no No NOoooOOOO......that is on the new BATFEeeeee SSSSploosive list!

SpaceCowboy on 06-19-2009 04:48 AM

#8 Re: Article: Higher prices may be ahead for some rocket motors

Hi,

Quote:

No, Constellation is not drying up the supply of ammonium perchlorate. If anything, it will help to keep prices down .

YES it is and NO it won't keep the prices down.

Quote:

AP is only made by one manufacturer in the US. The largest user of US ammonium perchlorate is the Space Shuttle RSRMs. With the shift from two RSRMs on the shuttle to just one RSRM-type motor for Ares I, the demand for AP is roughly half.

Correct me if I am wrong, BUTT isn't that other big honkin rocket NAZA is buildin gonna use 2 BIGGER SRMs Well I guess they cancelled that vehicle! WOW!

Quote:

Couple that with the fact that refurbishment of all three solid propellant motors for the 500 or so Minuteman III missiles is also nearing completion, and the overall demand for AP is going to drop significantly. As a result, AP prices are going up. When prices go up, spot market and surplus materials also go up and/or get scarce. That is what Aerotech is experiencing.

So the other 13 companies that use AP for their motors are not building anymore, WOW!

Quote:

If Ares I starts flying on a regular basis in the future, and, if Ares V starts flying, prices may decrease as demand increases. (BTW, if Delta IV Heavy replaces Ares I, then AP costs will soar even higher, as there will be much less demand for AP - so hobby rocketeers will be directly affected by the outcome of the Augustine commission and their recommendations).

You don't know mush about government procurement and contracts, the Delta isn't gonna replace the Ares, and production for the SRM's has already started so again annnnnnnn wrong!

Quote:

Most of the foreign users of AP buy or make their AP overseas, so their flight rate and use have no effect on US AP prices. As a general rule, AP is not imported or exported as a commodity.

Nice story butt that ain't right, at least not from my experience with AP!

Budd hey I don't care cause I like it when prices go up cause less people can fly rockets which means more airspace for meeeeee!

SpaceCowboy on 06-19-2009 05:05 AM

#9 Re: Article: Higher prices may be ahead for some rocket motors

Quote:

Hi,Correct me if I am wrong, BUTT isn't that other big honkin rocket NAZA is buildin gonna use 2 BIGGER SRMs Well I guess they cancelled that vehicle! WOW!



You don't know mush about government procurement and contracts, the Delta isn't gonna replace the Ares, and production for the SRM's has already started so again annnnnnnn wrong!

You mean the Ares V, that's a long way off yet.

Also, there is always the possibility of the Delta IV heavy replacing the Ares1, I believe NASA has run simulations on it and its man rated.

Chrisn on 06-19-2009 05:47 AM

#10 Re: Article: Higher prices may be ahead for some rocket motors

Matt,

Correct me if I'm wrong, but your post seems to argue that the AP market runs counter to the universal law of supply & demand. Are you saying that as demand goes up prices go down? I could see that perhaps on a temporary basis for the surplus market, but that argument sure doesn't work most other places. Gas up your car lately? Try to sell a house?
Greg

GregG on 06-19-2009 06:05 AM

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