Consumables

Sun Chemical announces price increases for the publications market

Monday 21. June 2010 - Sun Chemical Europe today announced that prices of its products in the publications marketplace will increase between 10 and 20% from 1 July this year. The increases are in response to raw material shortages and increased raw material costs that are affecting a large percentage of the printing inks industry.

Speaking ahead of the price increase, Felipe Mellado, Chief Marketing Officer of Sun Chemical, explained: “In the last six months the costs of many raw materials used in the production of our products for the publications market have risen significantly. While the efficiency of our dedicated manufacturing sites has helped offset some of these rising costs, we continue to face external challenges and so in order that our publications division continues to deliver value and remains competitive, we have needed to take action with this price increase.”

There are a number of factors at play that have led to the raw material shortages and subsequent rise in costs: increased demand from the emerging markets, not necessarily from the printing ink and related products industry, but from others using the same raw materials, has had a significant impact on supply. Added to this is the effect that destocking by the chemical industry during the recession is now having on supply in a recovering market. Finally, poor harvesting conditions and drought have led to a shortage of raw materials such as Chinese Gum Rosin which is used in Coldset inks and therefore directly affects the publications market.

The knock on effect of all these factors has necessarily been that major worldwide producers of raw materials have already announced or actioned price increases for their products.

Mr Mellado added: “Sun Chemical has not taken this decision lightly, but we believe it is the correct thing to do in order to continue offering world-class products and the highest level of service to our customers, while maintaining a sustainable business. We will be working with all of our customers in the publications marketplace to communicate details on the specific implications of this price increase, and remain committed to delivering quality, service and innovation.”