Raw materials such as pigment titanium dioxide will affect ink prices
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In order to help domestic printing companies and paper processing companies understand the reasons for the price increase of ink, the American Ink Manufacturers Association recently issued an announcement detailing the current status of the printing ink raw material supply chain. This announcement is provided free of charge to NAPIM's member companies, and the report reviews the supply of key raw materials contained in printing inks. Several of the raw materials currently having the greatest impact on the price of printing inks include: rosin, acrylic, carbon black, titanium dioxide, nitrocellulose, crude oil and natural gas, vegetable oils and various organic color pigments. On the one hand, the raw materials themselves are in short supply, and on the other hand, printing inks have to face competition from other fields using these materials.
Rosin
Rosin is the main material for the production of resin. The price of natural rosin has nearly tripled in 2010, but the market supply is still tight due to the low inventory. The resin produced from rosin is used not only for the production of offset, flexo and gravure inks, but also for the production of adhesives, road markings and rubber.
Acrylic
Acrylic production has encountered some problems, while demand in other areas continues to be bullish, making the market increasingly tight, and now the market price is manipulated by some major manufacturers. Price pressures and supply shortages will continue into 2011. These factors have a major impact on the aqueous ink and UV ink markets.
Carbon black
The decline in global carbon black production is obvious to all, resulting in significant price increases. Demand for carbon black has increased in the automotive industry and in other markets, while two major carbon black suppliers are facing a sale.
Titanium dioxide
The supplier did not expand production capacity, the market supply remained tight, and the inventory was slightly insufficient. Affected by the economic crisis, global titanium dioxide production capacity has dropped by 15% from 18 months ago, and there is no indication that there will be growth in this area in the future.
Nitrocellulose
Demand growth is accompanied by problems with wood pulp production, while cotton linters used to produce nitrocellulose have been reduced in 2010, a situation that is difficult to change in 2011. In order to meet domestic demand, China began to limit exports. In addition, as the plant shutdown peaked in 2011, the nitrocellulose supply chain will experience a downsizing.
Petroleum and natural gas
Crude oil refining and natural gas processing provide a variety of raw materials and intermediates for printing inks. Now, oil demand in China and Brazil is on the rise, while the Middle East is still the main exporter of oil, and of course they will sell their products to places where they can make a profit.
Vegetable oil
The vegetable oils used in printing inks are mainly linseed oil and soybean oil, a market that is complex and unpredictable. The main factors affecting vegetable oil prices include planting area, yield per mu, weather conditions, exports, exchange rate of the US dollar, oil prices, diesel production and commodity prices. Judging from the current form, the price of vegetable oil will remain high in the first half of 2011.
Color organic pigment
In the past few years, the production capacity of pigments has been declining, and there is no indication that this situation will develop well. Dye intermediate products are a branch of petrochemical industry. In this case, the price of dye-pigment is not likely to fall due to the increase in crude oil prices. At the same time, the demand for such products in other industries is also increasing, which has also affected the production of printing inks.
In summary, various factors, ink manufacturers are facing inflation of raw materials, the market shortage will continue. Corresponding raw materials may have further price increases, and the price of printing inks may also vary depending on the trend. In 2011, the possibility of major printing ink manufacturers to introduce price increases is not ruled out.