David Savastano, Editor09.01.14
For ink manufacturers, raw materials costs and supply are at the top of the list when it comes to concerns. Simply put, when ingredients cost more, ink companies have to either look for ways to take more costs out of the system or raise their own prices to their customers, neither of which have proven to be easy. Otherwise, margins suffer.
Volatile shifts in pricing are particularly painful for ink suppliers, as it is difficult for companies to adjust to these changes. In speaking with purchasing executives for my article, “The 2014 Raw Material Report,” which starts on page 16, “stability” is frequently used to describe pricing for most raw materials. Now, prices are a lot higher than they used to be, but ink industry leaders are happy just to be able to have a consistent price basis to use.
Having said that, no one is certain whether this stability will last, as geopolitics and the global economy will have a say in pricing and availability. There are also areas where prices are rising, such as with azo pigments, which are impacted by China’s new emphasis on strengthening environmental regulations and cracking down on polluting industries. Purchasing executives are closely watching these developments.
The printing and ink industries are enjoying strong growth in the Asia-Pacific market, and China continues to headline the expansion there. With a population of more than 1.35 billion and a gross domestic product (GDP) growth of 7.7% in 2013, China is a powerful economic engine. China’s printing market is estimated at $150 billion, and the country has developed a gigantic domestic market for printing as well as a large export base.
In speaking with international and Chinese ink industry officials for my report on the ink market in China (“The Chinese Ink Market Continues to Expand,” beginning on page 20, the ink industry is experiencing solid growth in China, particularly on the packaging side. There is every reason to believe the need for packaging will continue to expand within China, and the ink industry will continue to grow with it.
In addition, in this issue, Ink World features our annual Buyers’ Guide, the printing ink industry’s most comprehensive listing of raw materials, equipment and services. This year’s edition, which also is available online at www.inkworldmagazine.com, offers key data and contact information for suppliers, distributors and trade associations. I hope you enjoy it!
Volatile shifts in pricing are particularly painful for ink suppliers, as it is difficult for companies to adjust to these changes. In speaking with purchasing executives for my article, “The 2014 Raw Material Report,” which starts on page 16, “stability” is frequently used to describe pricing for most raw materials. Now, prices are a lot higher than they used to be, but ink industry leaders are happy just to be able to have a consistent price basis to use.
Having said that, no one is certain whether this stability will last, as geopolitics and the global economy will have a say in pricing and availability. There are also areas where prices are rising, such as with azo pigments, which are impacted by China’s new emphasis on strengthening environmental regulations and cracking down on polluting industries. Purchasing executives are closely watching these developments.
The printing and ink industries are enjoying strong growth in the Asia-Pacific market, and China continues to headline the expansion there. With a population of more than 1.35 billion and a gross domestic product (GDP) growth of 7.7% in 2013, China is a powerful economic engine. China’s printing market is estimated at $150 billion, and the country has developed a gigantic domestic market for printing as well as a large export base.
In speaking with international and Chinese ink industry officials for my report on the ink market in China (“The Chinese Ink Market Continues to Expand,” beginning on page 20, the ink industry is experiencing solid growth in China, particularly on the packaging side. There is every reason to believe the need for packaging will continue to expand within China, and the ink industry will continue to grow with it.
In addition, in this issue, Ink World features our annual Buyers’ Guide, the printing ink industry’s most comprehensive listing of raw materials, equipment and services. This year’s edition, which also is available online at www.inkworldmagazine.com, offers key data and contact information for suppliers, distributors and trade associations. I hope you enjoy it!