Raw materials: the coating industry is under great pressure
raw materials: the coating industry is under great pressure
March 29, 2021
according to cepe, due to the rising price of raw materials, the European coating, printing ink and artist coating industries are under great pressure
transportation costs are increasing due to the sharp rise in oil prices
cepe believes that the industry associations of European coatings, printing inks and artist coatings industries believe that the complex combination of demand, production capacity and scarce transportation of key raw materials is increasing the uncertainty of coatings in the supply chain from the day of entrepreneurship. The association said that although it has a great impact on the industry, the coating industry is trying to reduce the risk of customers
cepe president Andr é Vieira de Castro said: "after a year of covid-19 pandemic, our industry will again face severe challenges in 2021 due to the rise in raw material prices." He said that there were many reasons for the growth: due to the expected economic recovery, the demand for raw materials increased, the shortage of available raw materials caused by bad weather, and the closure of several factories, which forced raw material suppliers to take action. "Force majeure." In addition, due to the sharp rise in oil prices, transportation costs are also increasing
"the industry bears a heavy burden"
Andr é Vieira de Castro added: "As the price of raw materials accounts for more than half of the cost, the burden on the industry is heavy. Since last January, the cost of major components in Europe such as epoxy resin has increased by 60%. The same is true for solvents. Only the price of acetone and n-butyl acetate has increased by 123% and 91% respectively, which will constitute high molecular polymers."
in cepe's briefing, the current situation originated in Europe and Asia, especially the unexpected V-shaped recovery from China, which is driving the demand for key raw materials. According to the company, in addition to epoxy resin, petrochemical raw materials in great demand also include polyester resin, polypropylene glycol, acrylic acid, acrylic resin, UV resin, polyurethane resin and solvent. At the same time as petrochemical raw materials, the cost of global pigments (including titanium dioxide, red and yellow iron oxide) has also risen sharply. The main drivers of price increases include strong demand in all industrial sectors, increased domestic supply demand in producing countries, the overall imbalance between supply and demand, and the rising cost of pigment ingredients
cepe said that the capacity problem further exacerbated the current situation: the interruption of Asian and European manufacturers (whether caused by factory closures or operational accidents) has seriously strained the average supply of coatings. He said that another cost factor is the scarcity of transportation resources. He said that the covid-19 pandemic led to a surge in international trade demand and affected global container transportation. He said that since the fourth quarter of 2020, container prices between China and Europe have increased by more than 400%
the association said that although the coating industry is trying to cope with the current uncertainty, the pressure of the global market should make European policymakers think a little. "There is no doubt that improving sustainability is the way forward, but in the measures of the EU green agreement, global competition cannot be ignored. For Europe, it is crucial to have a strong chemical industry and set up factories in Europe to achieve self-sufficiency. Otherwise, the entire European economy will be threatened."