David Savastano, Editor09.21.18
The past 18 months have been chaotic for ink manufacturers and their suppliers. The relative stability in terms of costs and supply of key ingredients has disappeared. Now, the supply of important raw materials is erratic and pricing is constantly fluctuating.
Purchasing executives with leading ink companies discuss their concerns in our report, “The 2018 Raw Material Market,” which begins on page 26. Much of this turmoil is driven by environmental restrictions occurring in China. In addition, fires, force majeures, and other factors are leading to shortages in key intermediates for photoinitiators as well as azo pigments, feedstocks and many other materials.
The most pressing concern is with a key precursor for TPO and TPO-L, which are important photoinitiators for inkjet inks and UV LED inks as well as coatings. There are only a few factories in China making this precursor, and the closing of one of these facilities has led to a shortage of materials for these photoinitiators. As a result, ink companies have had to scramble to get materials, and prices for the materials that remain on the market have soared.
The alternatives to paying higher prices aren’t any easier. Reformulating inks and coatings require approvals from customers, who are concerned about what ingredients go into their packaging.
Purchasing executives say there are more challenges ahead, including the possibility of higher tariffs on chemicals. As a result, ink company officials find themselves coping with the present-day concerns, while wondering what might be coming next.
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The September/October issue also offers Ink World’s annual Buyers’ Guide, the most comprehensive listing of raw materials, equipment and services, distributors and trade associations for the printing ink industry. In addition to our issue, our Buyers’ Guide is available online at www.inkworldmagazine.com. I hope you find it very helpful!
Purchasing executives with leading ink companies discuss their concerns in our report, “The 2018 Raw Material Market,” which begins on page 26. Much of this turmoil is driven by environmental restrictions occurring in China. In addition, fires, force majeures, and other factors are leading to shortages in key intermediates for photoinitiators as well as azo pigments, feedstocks and many other materials.
The most pressing concern is with a key precursor for TPO and TPO-L, which are important photoinitiators for inkjet inks and UV LED inks as well as coatings. There are only a few factories in China making this precursor, and the closing of one of these facilities has led to a shortage of materials for these photoinitiators. As a result, ink companies have had to scramble to get materials, and prices for the materials that remain on the market have soared.
The alternatives to paying higher prices aren’t any easier. Reformulating inks and coatings require approvals from customers, who are concerned about what ingredients go into their packaging.
Purchasing executives say there are more challenges ahead, including the possibility of higher tariffs on chemicals. As a result, ink company officials find themselves coping with the present-day concerns, while wondering what might be coming next.
*****
The September/October issue also offers Ink World’s annual Buyers’ Guide, the most comprehensive listing of raw materials, equipment and services, distributors and trade associations for the printing ink industry. In addition to our issue, our Buyers’ Guide is available online at www.inkworldmagazine.com. I hope you find it very helpful!
