Raw Material Shortages - Inks

Press Release

20th January 2011

RAW MATERIAL SHORTAGE CONTINUES IMPACTING UK PRINTING INK INDUSTRY

The British Coatings Federation (BCF) is warning that a shortage of raw materials used in the processes for manufacturing printing inks will continue to be a major concern throughout 2011. A current increase in demand for raw materials combined with the supply shortage will put greater pressure on manufacturers leading to a continuing inflationary spiral.

The short supply of raw materials was originally reported by the BCF in the first half of 2010. The situation is likely to get worse in 2011 as the printing ink industry continues to suffer from a shortage of a wide range of materials.

For example cotton is a key ingredient in the manufacture of nitrocellulose. Floods in Pakistan and poor cotton harvests elsewhere along with plant closures have limited nitrocellulose production. The availability of gum rosin in China is seriously constrained leading to a four-fold increase in the cost of the material and growing demand for epoxies, acrylics and titanium dioxide particularly in Asia has come up against plant closures and force majeure situations.

The European Printing Ink Association (EuPIA) recently reported that the supply of pigments has been hit by mounting environmental challenges and increasing intermediate costs. Organic pigments for the printing ink industry are sourced from China and India where a surge in domestic demand has put limits on the material available for export. The availability of a key intermediate in the manufacture of Violet 23 has been seriously limited, leading to reduced availability of the pigment itself. China and India have announced more stringent environmental rules for the production of pigments and in addition, the energy saving program in China has affected many pigment and pigment intermediate suppliers.

Titanium Dioxide has been a particular area of concern. The product has been in tight supply for over a year but none of the European suppliers have announced an expansion in capacity. Given the long lead time to put in extra capacity, it is clear that this problem is not going to disappear quickly.

“The global availability of raw materials for printing inks continues to be of major concern to our member companies and procurement has become a daily nightmare," commented Tony Mash CEO of the BCF. “There is little or no clear view as to how long the shortages and product allocations are likely to last. As a result, ink manufacturers face a situation in which they have only minimal control over the cost and supply of the raw materials they need to manufacturer their products. The printing ink industry needs to raise awareness of these difficulties to both suppliers and customers."

-ENDS-

For further press information please contact Emma Marsh at CIB Communications on Tel: 01372 371 800 or Fax: 01372 371 801.