1170 PI Packaging
Increasing raw material cost pressure now also affecting prices of packaging inks
Flint Group announces price increase for packaging inks in Europe
As recently reviewed by several industry associations and having been underlined by numerous price increase announcements of chemicals suppliers the cost of key raw materials for inks have risen dramatically, in some cases by more than 30% over the last 6 months. In addition the weak Euro increased the pressure on ink producers. Despite rigorous internal mitigation measures Flint Group is therefore now regretfully forced to advise a price increase of 6-7% for packaging inks from 15th July 2010.
Jens Zimmermann, Director Global Marketing Flint Group Packaging & Narrow Web, explains the main reasons for the raw material cost increases: “While the challenges
in 2008 were clearly related to pricing of crude oil, the current challenges have quite a differentiated background. The two key contributors are:
- Major shortages of key raw materials on one side and
- ongoing base chemical cost increases on the other side.'
He continues: “This has been driven by supply / demand imbalances on the raw
material markets caused by the economic revival as well as a significant de-stocking of most raw material supply chains following the economic collapse at the end of 2008. The increasing number of “force majeure” situations and key base raw material suppliers moving away from the ink industry has now escalated the situation.
One of the specific challenges for the packaging industry is the cost of solvents
where major suppliers have announced significant price increases. In addition nitro cellulose prices are being driven up by high price increases in wood-pulp, a key raw material of nitro cellulose.
Mr. Zimmermann concludes 'the cost increases have now proved too large for Flint Group and force us to adapt the prices for packaging inks in Europe in order to enable the group to maintain its ability to deliver exceptional value, consistent quality, and continuous innovation to customers around the world”.
14 June 2010
For more information, contact
Flint Group
Jens Zimmermann
T +43 64 534 2081
jens.zimmermann@flintgrp.com