Coatings and printing inks industry in trouble

The coatings and printing ink industries in the UK and across Europe are suffering disruption to production due to rising raw material prices and reduced availability, the British Coatings Federation (BCF) said recently.

The price is one of the most affected variables, but this increasing trend is due to several factors, on the one hand, the product of the pandemic and, on the other hand, the new situation of the United Kingdom within Europe: demand is increasing due to the shortage of many raw materials, the rising price of oil, a worldwide shortage of shipping containers, which has logically affected the price of transport from Asia to Europe, and non-tariff customs costs have increased due to the new agreements between the United Kingdom and Europe, which add to the cost of raw materials imported from Europe by the French region.

There is a severe shortage and price increase of certain products such as solvents, resins and others. Such is the case of the shortage of pigments, such as red and yellow iron oxide, as well as plastic polymers, “which affects the availability and prices of packaging, with 5-litre paint cans 10% higher than in the same period last year, and tinplate has seen a similar increase,” according to a statement from the association in January this year.

“Since raw materials and freight comprise the majority of the total cost to produce paints, coatings and printing inks, this trend will have a major impact on BCF member companies’ operations,” said Tom Bowtell, CEO of BCF. “Wherever possible, BCF members will seek to mitigate higher costs through internal process optimization measures, alternative sourcing and greater efficiencies.”

BCF is the only UK Trade Association representing the interests of manufacturers of decorative, industrial and powder coatings, printing inks and wallcoverings.