Both Flint Group (Flint) and DIC subsidiary Sun Chemical (Sun) are increasing prices on packaging inks, citing increased raw materials costs and a number of force majeure incidents in China, as the price rise drivers.
For Flint customers, the increases will be across the board for packaging inks, while Sun customers will see the price of liquid inks and coatings for flexible packaging rise.
It is not the first price rise for Flint or Sun this year, Flint cited similar pressures on raw material pricing for its price increases in March, while Sun raised prices by 8 per cent for its water-based and UV/EB inks and coatings in May.
Flint says, “Increased, incremental cost escalation forces Flint Group to raise the prices of its Packaging Inks products.
“Further to announcements made in March 2017, it has become clear that the raw material markets for many components within Flint Group’s Packaging Inks products have experienced price escalation. Many raw material markets remain highly volatile as 2017 comes to a close.
“Q3 2017 saw significant increases and supplementary rises have been announced for Q4 2017. Current forecasts indicate that the price pressure will not lessen as the industry moves into 2018.
“Argumentation is discussed below and our sales representatives are currently in the market discussing the magnitude of increases for each customer and segment.”
Sun Chemical will increase prices on liquid inks and coatings for flexible packaging for its customers across all regions, effective January 1, and says the percentage increase will be in the high single digits and will vary across product lines.
“Since the end of 2016, costs have risen on an annual basis and further increases are expected for 2018. These are mainly due to production and environmental restrictions on key materials, especially in China where there has been an unprecedented number of force majeure incidents and escalations in the prices of oil, solvents and key monomers for polyurethane (PU) resins. Additionally, the supply situation of titanium dioxide (TiO2) white pigment remains tight, driving continued cost increases.
Felipe Mellado, chief marketing officer, Sun Chemical, says, “The high levels of raw material costs are unprecedented and as a result make it necessary for us to keep our ink prices under review.
“We work proactively with our supply chain partners to manage and minimise costs, but due to the economic reality, cost pressures have been constant and significant price increases are being passed on to the inks industry. To ensure we maintain high levels of product quality and service, it has become necessary to increase customer prices.”
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