The British Coatings Federation (BCF) has warned that the availability of raw materials and price hikes may end up as the biggest issues facing the coatings and inks sectors throughout 2021.
The trade association has warned that lack of availability of key raw materials and subsequent significant price increases are causing major disruption to the coatings and printing ink industries in the UK and across Europe.
It has highlighted four significant trends affecting raw material prices:
- Strong global market demand that has led to shortages of many raw materials
- A rise in oil prices by 58% since November 2020 (currently US $68 a barrel)
- A global shortage of shipping containers that has led to a sharp rise in transport costs from Asia to Europe
- Additional non-tariff costs related to the new UK customs arrangements with the EU
‘Given that raw materials and freight comprise the majority of the overall cost to produce paints, coatings and printing inks, this trend will have a major impact on the operations of BCF member companies,’ said BCF CEO Tom Bowtell. ‘Where possible, BCF members will seek to mitigate higher costs via internal process optimisation measures, alternate sourcing and increased efficiencies.’
