Sun Chemical Europe announced that a price increase will be implemented for its products in the coldset market with immediate effect. The price increase of €0.40 in coldset color inks and €0.30 for coldset black inks has become necessary due to a serious shortage in raw materials that are essential to coldset products – notably rosin resin and most pigments. This supersedes previous announcements.
Indeed, rosin resin has already increased 75% this year and prices are up 300% compared to the price this time last year. Rosin resin, which is one of the most important low cost resins used in the manufacture of publication inks and pigment flushes, has and will continue to experience high price volatility and constraints of future supply.
Cost increases are, however, also due to a combination of other factors. First is the strengthening of the Chinese and Indian currencies versus the dollar and the euro which is having a major impact. Secondly, pigments, which make up a large part of the contributing cost for coldset colors, have already increased by an average of 4% this year and a further 5% rise is expected next year. Finally, supplier factory closures earlier in the year are still having a direct impact on the availability of raw materials, as no significant capacity expansion of finished pigments has taken place.
Added to this, production and environmental restrictions in both India and China are also playing a significant role, and carbon black, another essential ingredient for coldset black inks, is under strong demand and is mostly being absorbed by other industries.
“The whole of the printing inks industry continues to face serious external challenges, and therefore it has been necessary for us to implement price increases to maintain profitability, as so many others have already done,” Felipe Mellado, chief marketing officer of Sun Chemical, commented. “Sun Chemical is working hard to offset some of the raw material cost increases, but with shortages continuing and in some cases deteriorating, this move has become essential.
“The decision to further increase coldset ink prices was not taken lightly, but in order to continue offering our customers quality products and services from a sustainable business, this increase was essential,” Mr. Mellado added. “All customers will be contacted directly to discuss the implications and to support them through the process.”