The price increases will vary as different products that Sun Chemical offers have a different chemical composition, but the average cost increase will be approximately 6 percent for most products.
White inks, nitrocellulose varnish, and other products containing the phthalocyanine green (PG7) pigment will each see significantly higher price increases. Specific price increases by region will be announced in the following days.
“Raw materials cost and supply instability continue to significantly impact the ink industry,” said Felipe Mellado, chief marketing officer, Sun Chemical. “In fact, raw materials in 2011 experienced both a record level of volatility as well as unprecedented price increases. Titanium dioxide, for example, experienced steep price increases reaching a level more than 50 percent higher than in early 2010.”
In addition to steep price increases for TiO2, there were very significant increases in nitrocellulose, energy cure resins, acrylics and other packaging resins, styrene, classical pigments, carbon black, vegetable oils, solvents, and additives.
The factors causing this volatility and inflation include feedstock shortages, commodity inflation, supply constraints and continued growth in demand from both traditional markets as well as from alternative industries like adhesives, coatings and tires.
“We regret needing to take this action, but as is occurring in virtually every industry today, current market conditions demand we adjust our prices,” Mr. Mellado said. “It is our commitment to continue to work closely with customers to help them get the most possible out of our products, and to develop new valued products and services that can help grow their business despite this challenging marketplace.”