Industry body warns of ink price hike

The labels and packaging market is likely to see a further rise in printing ink prices as a result of the recent surge in the cost of crude oil, according to Moira McMillan, British Coatings Federation CEO.  This difficult situation is being further exacerbated by reduction in refining capacity in USA, fears regarding supplies from Iran and increasing demand from China, which has resulted in the announcement of pending price increases in the USA.
‘Members in this sector have flagged up to us the inevitability of further price rises in the face of escalating raw materials costs – rises which are likely to come through in a matter of weeks rather than months, unless there is a rapid easing of the current situation,’ warned McMillan.  ‘One year ago the price of a barrel of Brent Crude was in the region of $32 – now it is hovering around the $60 dollar mark. Printing ink manufacturers have been holding prices while current stocks last, but in a very difficult market they cannot absorb cost increases of this magnitude for any significant length of time.”