Ink prices to rise 4 to 7%
Ink prices are expected to increase because of inflation and the increase in raw material costs. Flint Group announced a rise of 4 to 7% and Siegwerk said that a shortage of titanium dioxide, used in packaging ink, due to a fire in a Finnish plant will also inflate prices. Ink is only a small factor in print cost price, but for larger orders or low-cost long-term contracts it will have an effect, especially for packaging.
Read more about the rise in prices in the press releases below.
Titanium Dioxide shortage leads to higher prices of printing inks
The industry has been observing a substantial increase of TiO2 prices for the last 18 months, mainly driven by reduced production capacities in Asia as well as recent mergers substantially reshaping the TiO2 market. On top of this, a fire incident – declared as force majeure – occurred in January 2017 and forced one of the largest TiO2 manufacturers to stop its production. The affected site in Pori, Finland, normally accounts for a considerable amount of the global TiO2 ink grade capacity which now is shut down creating an immense supply shortage. The supplier is committed to repairing the site as quickly as possible but the duration of the production stoppage is still unpredictable. Going forward, serious supply shortages throughout 2017 can be expected.
“We at Siegwerk have been working intensively to maintain a continuous supply of titanium dioxide through our own global supply network. Thus, we have secured the supply for our current customers. We will work closely with them to determine the individual best solutions by evaluating the use of alternative titanium dioxide grades or products of different qualities,” says Hugo Noordhoek Hegt, President EMEA at Siegwerk. “However, the persisting supply shortage has led to substantial cost increases and therefore also forces us to adjust the prices of all of our inks containing titanium dioxide.”
Siegwerk is taking all necessary steps to limit any impact on its customers’ ongoing operations. Details about the new pricing will be communicated individually to each customer.
About titanium dioxide
Titanium dioxide (TiO2) is a white pigment that is irreplaceable for the formulation of white inks and coatings due to its high opacity. Especially in flexible packaging, the performance of a white ink is key for a high-quality print result. That’s why the current TiO2 supply shortage has substantial impact on the printing ink industry.
Flint Group announces global price increase for its Packaging, Narrow Web and Sheetfed products
15th March 2017 – Due to highly volatile raw material markets and an uncertain macro-level landscape, Flint Group is introducing a global price increase for its Packaging, Narrow Web and Sheetfed customers.
Following a prolonged period of significant raw material cost inflation, force majeure announcements and changes in the supply outlook of raw materials for printing inks and varnishes, Flint Group Packaging, Narrow Web & Sheetfed division confirms price increases of between 4% – 7%, effective April 3rd 2017. Mr. Doug Aldred – President of the Packaging, Narrow Web & Sheetfed division, announcing the decision to adjust prices stated, “The increases will vary by product group and our business managers will be in contact with their customers over the next few days to discuss the details.”
On 22nd February, Flint Group announced price increases and a variable surcharge due to the supply constraints and price inflation seen in the global Titanium Dioxide (Ti02) market. Nonetheless, the security of supply for many ink-related raw materials has recently worsened (in addition to the Ti02 crisis), thus expediting a further general price increase announcement to cover the rising cost landscape.
Mr. Adhemur Pilar – President Flint Group Latin America confirms, “We have been subject to compelling volatility in our supply chain for some time now; our focus has always remained on securing product quality and long term availability. Unfortunately, this has led to the higher costs that we are now experiencing.”
Further information in relation to the raw material cost escalations can be found on the Flint Group website (http://www.flintgrp.com/en/news-information/press-releases/) via a “Raw Material Trends” report.
In conclusion Mr. Aldred emphasised, “Flint Group is working tirelessly to mitigate the costs of these dramatic increases in raw materials being passed to our valued customers by investigating alternative sources of supply and committing capital to efficiency projects. However, in such volatile conditions the Group has no option but to review the sustainability of current pricing models and adjust accordingly. Flint Group remains committed to supporting our customers in a responsible manner as a dedicated partner.”
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