The increases are as follows: 4 percent for packaging solvent-based inks, 8 percent for packaging water-based inks, 6 percent for UV flexo inks, and 14 percent for commercial and packaging energy curable (EC) paste inks and EC coatings.
For more than two years, raw materials and energy cost volatility have significantly impacted the ink industry, the company says. Non-traditional factors that began earlier this year to affect the price of major feedstocks and raw materials continue, including: supply base consolidation and capacity curtailment, significant decline in refinery margins, and rationalized operating rates to meet diminished demand. The combination of these factors has led to elevated fixed costs on raw material goods.
“Raw material suppliers continue to consolidate, leading to fewer industry supply options to choose from and significantly higher costs in manufacturing inks,” says Grant Shouldice, director, product management, energy curable, North American inks at Sun Chemical. “We continue to work on controlling our own costs closely with our supply chain partners, to improve our internal operations and to develop new value oriented products that can help customers grow their business.”
Sun Chemical, based in Parsippany, NJ, USA, has annual sales of $3.5 billion and 10,000 employees.