Over the past six months, the cost of key raw materials for inks has risen dramatically, in some cases by more than 30%. The demand imbalance on the global raw material and chemical feed stock markets has caused a significant de-stocking of most raw material supply chains.
Consequently the costs of base chemicals have increased continuously since early 2009. The price increases in specialty chemicals are double-digit on key feedstocks while a number of force majeure situations have added to the pressure.
Michael Impastato, vice president strategic marketing Flint Group Packaging & Narrow Web, explains: “Flint Group is conscious that its customers continue to face a difficult business environment, and many materials together with energy and transportation continue to rise. However, Flint Group is not exempt from this global situation, and although our technical team is constantly searching for ways to mitigate these effects, we are incurring tremendous cost increases despite our ongoing cost containment programs. The cost increases have now proven too large, and the need to pass on these higher costs to our customers is necessary.”
Flint Group is announcing the following average price increase effective August 1, 2010:
• Solvent inks and coatings - 4%
• Water inks and coatings - 8%
• UV inks - 8%
• UV Coatings - 11%