Fujifilm Sericol, an ink manufacturer, and Loparex, which supplies release liners, announced price increases in the past week. Statements released by many companies in recent weeks echo the words used by Fujifilm Sericol, which cites “unrelenting increases in the cost of crude oil, and the resultant impact on raw material and transportation costs.”
Fujifilm Sericol will increase prices on inks and consumables in North America effective August 1. The increases will range from 5 to 10 percent by product group, with a few exceptions up to 15 percent. The increases will affect all product technologies including UV, water, and solvent based inks.
“Unfortunately, over the past several months we, and the rest of the industry, have experienced unprecedented, non-negotiable price increases from virtually all of our key suppliers,” says Mitch Bode Sr., vice president of Fujifilm Sericol Americas, Kansas City, KS, USA. “Most of our raw materials are petroleum based, and the price of a barrel of crude oil has risen from $53.39 to $140.21 since our last price increase in November of 2005. Up until now, productivity improvements in manufacturing and optimization of freight efficiencies have helped offset some of the raw material and transportation cost increases. However, the size of these increases and the breadth of materials impacted can no longer be absorbed or offset by manufacturing or supply chain efficiencies.”
Loparex, a manufacturer of release liners, announced the implementation of an index-based surcharge on all domestically produced contract and non-contract items shipped on or after the effective date. The surcharge will be a weighted measure tied to the Producer Price Index for Intermediate Materials, Supplies and Components (ID Series: WPUSOP2000), which is reported on a monthly basis by the US Department of Labor for the previous month’s index movement. Specific data regarding this index and the Producer Price Indices in general, can be found at www.bls.gov/ppi.
Loparex’ monthly surcharge will be adjusted on the 25th of each month based on index movements, up or down, by a value of 78.6 percent of the change in index value from the March 2008 baseline (184.1) to the month of shipment. Once the index returns to, or goes below the baseline index value (184.1), the surcharge will be 0 percent.
“The last 12 months have been a time of extreme input cost pressure that has not been experienced in over 30 years,” says Steve Saunders, director of marketing for Loparex, Willowbrook, IL, USA. “Raw materials continue to face sustained volatility along with record high utilities and transportation costs. All converters are experiencing these same cost pressures. Loparex remains committed to providing the highest quality release liner products, value, and service to its customers.”