Stricter environmental regulations on pigments,intermediates are the driving force for higher prices
Sean Milmo, European Editor08.01.14
Europe’s ink producers are facing long-term hikes in pigment prices as a result of the restructuring of the supply chain in both their domestic sector and in Asia. The main driving force behind the increasing prices will be the enforcement of stricter environmental regulation, not just in Europe but in Asia, particularly China.
With organic pigments, a more severe implementation of environmental rules is resulting in plant closures or cuts in production capacities in Asia for both the pigments themselves and their intermediates.
Prices of organic pigments in Europe, which is heavily dependent on Asia producers, went up by a few percentage points in the first half of this year, and is likely to rise by a similar proportion in the second half.
These relatively small but persistent increases will probably be a permanent phenomenon over several years as the governments of Asian countries making bulk pigments and their intermediates embark on rigorous programs of reducing ind
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