“Several raw material suppliers have already implemented two price increases this year and a third round of announcements is expected shortly,” said Felipe Mellado, chief marketing officer for Sun Chemical. “Various materials have also been placed under sales control, which restricts access to the necessary product ingredients. The weakening euro has also had a significant impact on raw material prices.”
With raw material capacity having been reduced during the recession, the increase in demand from the Far East as well as North American and Europe is straining current stock levels. Feedstock pressure as well as plant closures have also contributed towards the shortage of supply and therefore an overall average increase of 10% in raw material cost has been passed on to manufacturers this year.
Mr Mellado added that “the print industry is under significant pressure to mitigate the effect of increasing raw material costs. Sun Chemical’s purchasing, technical and manufacturing teams are working very hard to ensure that our flexibility of sourcing allows us to minimize disruption, but it has become necessary to implement price changes to maintain our commitment to customer service, world-class quality products and continuous innovation.”