The price increases and shortages of a wide range of raw materials that started during the recovery of the world economy from the 2008 financial crisis are continuing
Although ink companies appear likely to be able to pass along higher prices to their customers, there remain serious concerns about supply and pricing.
In recent years, stable pigment prices have helped ink manufacturers weather surging crude oil prices. The elimination of the VAT refunds on pigments in China is changing all of that.
Led by crude oil, prices for key ink ingredients across the spectrum are rising dramatically, leading companies to wonder when, and if, prices will eventually stabilize.
While pricing of key ingredients remains a concern, availability is becoming a serious issue for the ink industry, as the supply of key raw materials such as acrylic acid is not keeping up with demand.
As the price of oil derivatives and other key raw materials continues to increase and availability of some products remain a concern, ink manufacturers anticipate further challenges in the coming year.
While the raw material market is showing some signs of beginning to correct itself as some price increases have been announced, the question of whether the ink industry can support such increases remains uncertain.