Dave Savastano, Editor05.20.15
The issue of crude oil prices came up a lot during the recent National Association of Printing Ink Manufacturers (NAPIM) Annual Convention. Ink industry executives are finding themselves explaining to their printing customers that the drop in the cost of crude oil does not have a huge impact on the actual cost of printing inks.
As industry leaders note in my story on “The Impact of Lower Crude Oil Costs on Printing Inks,” which begins on page 16, the significantly lower cost of crude oil does not necessarily lead to lower ink prices. Actually, natural gas is more of an indicator, as it is the precursor to the feedstocks for packaging inks.
On the publication ink side, the shift to shale oil and gas production is leading to higher prices, as companies are refining shale gas rather than crude oil, whose derivatives are key to the ink industry. This is leading to concerns over hydrocarbon resin supplies, as just one example.
For European ink manufacturers, the issues run deeper. The Euro has declined more than 20% relative to the dollar, and since oil is traded in U.S. currency, European ink producers are at a disadvantage. There is also the expectation that these lower crude oil prices are only temporary. Purchasing executives are closely monitoring these developments.
Our May/June issue also has our annual look at two of the strongest growth markets for ink manufacturers, with our annual reports on packaging ink (starting on page 20) and inkjet ink.
Resins and additives play key roles in ink formulation, and Ink World’s annual features on these can be found in this issue.
Also in this issue, I cover NAPIM’s Convention in which the association celebrated its 100th anniversary with many alumni on hand to enjoy the festivities. As NAPIM celebrates 100 years, it is a good time to reflect on the advances made in the ink industry, and also an opportunity to look ahead to the future.
As industry leaders note in my story on “The Impact of Lower Crude Oil Costs on Printing Inks,” which begins on page 16, the significantly lower cost of crude oil does not necessarily lead to lower ink prices. Actually, natural gas is more of an indicator, as it is the precursor to the feedstocks for packaging inks.
On the publication ink side, the shift to shale oil and gas production is leading to higher prices, as companies are refining shale gas rather than crude oil, whose derivatives are key to the ink industry. This is leading to concerns over hydrocarbon resin supplies, as just one example.
For European ink manufacturers, the issues run deeper. The Euro has declined more than 20% relative to the dollar, and since oil is traded in U.S. currency, European ink producers are at a disadvantage. There is also the expectation that these lower crude oil prices are only temporary. Purchasing executives are closely monitoring these developments.
Our May/June issue also has our annual look at two of the strongest growth markets for ink manufacturers, with our annual reports on packaging ink (starting on page 20) and inkjet ink.
Resins and additives play key roles in ink formulation, and Ink World’s annual features on these can be found in this issue.
Also in this issue, I cover NAPIM’s Convention in which the association celebrated its 100th anniversary with many alumni on hand to enjoy the festivities. As NAPIM celebrates 100 years, it is a good time to reflect on the advances made in the ink industry, and also an opportunity to look ahead to the future.