Faced with continued increases in raw materials and operating costs, Sun Chemical will increase prices by 12 percent for publication inks effective July 1, 2008.
“Crude oil prices have made an unprecedented rise over the last six months, increasing by over 45 percent from what were already record levels in early December 2007,” said Greg Lawson, vice president sales, Sun Chemical North America. “We are seeing the effect of these increases in the many oils, resins, and other hydrocarbon related raw materials we use, as well as in the transportation costs of everything we buy or sell. This run-up in costs is being driven by many factors—most notably the continuing tight supply/demand balance for oil, as well as the weakening dollar, and the attractiveness of commodity markets as alternative investments.”
Pigments and intermediates markets in China continue to generate significant cost pressures for ink manufacturers because of critical raw material shortages as well as environmental constraints on manufacturing that are being exacerbated by the upcoming Summer Olympics in Beijing.
“Unfortunately, these markets will continue to be under pressure for the foreseeable future,” Mr. Lawson said. “In these most challenging times we are committed to providing our customers with innovative products, services, and constant supply, allowing them to present the best value propositions in the market.”