Information note: Printing ink manufacturers squeezed from all sides

New data released in recent days by the BCF shows printing ink manufacturers being hit from all sides with higher raw materials costs and sharply lower demand having a major impact across the industry.

ONS data for the 3 months to February this year shows raw material input prices up 16% on this time last year and a massive 40% higher than in January 2020. At the same time energy prices have gone through the roof and although prices have fallen in recent month gas and electricity prices are still three times higher than just 2 years ago.

BCF’s own statistics on average raw material prices show big increases in many areas especially solvents, pigments, extenders and packaging used in the manufacture of printing inks and paints.

Our independently compiled statistics show solvent price increases often of 20% to 30% in the last 3 months. For example, average Xylene prices per litre were 36% higher with White Spirit up 30%, Petroleum Naphtha 28% higher and Acetone up 26%. There were a few materials that showed price falls, such as N-Butanol and B-Butyl Acetate but in both cases prices in February were still about double the typical level of 2020.

For pigments, the picture was also bleak with price increases of 38% and 44% for Zinc Dust and Zinc Phosphate with Titanium Dioxide prices still over £3,000 per tonne being up 8% in the last 3 months on a year ago and nearly double the level of 2016.

For extenders, average purchase prices were typically up 30% with examples being Silica Matting Agent up 40% and China Clay Speswhite 32% higher than a year ago.

Packaging prices were higher across the board usually by in the region of 10% to 20%. For example, 5 litre round tins were up 17% on a year ago.

Further information: Any queries to Whittle Industry Data. Tel 01206 824028, email john.dixon@wid.co.uk