The recent recession saw chemical manufacturers remove excess capacity, and as we now start to come out of recession and demand is again on the increase, it is widely expected that there will be short-term shortages in raw materials, with the potential for increased prices as demand outstrips supply.
One example of this is with Flint Group announcing price increases on a number of pressroom chemistry products sold in the Americas.
Increases range from 5% to 12%, depending on product line, and take effect for products shipped on or after June 1, 2010. Products include alcohol substitutes, sheetfed fountain solutions, conventional press wash, UV press wash, metering roller cleaner, film cleaners and deglazers/rejuvenators.
“A number of factors have significantly increased our raw material costs,” says Kevin Fennewald, business director, Pressroom Chemicals. “During the recent recession, major chemical manufacturers removed excess capacity. Now, with demand increasing, raw material costs are rising and supply is scarce.
“The rising cost of crude is also a key contributing factor,” continued Mr. Fennewald. “Other substantial cost increases have come from container and freight suppliers. All of these factors have affected Flint Group’s cost to manufacture and distribute pressroom chemistry products.”
Flint Group’s staff has worked hard to assure product supply and minimise the impact on customers, but the combination of economic and market factors has led to cost increases beyond what Flint Group is able to absorb.
