Flint Group VP Offers Insight on Raw Material Costs in 2012

“The crude oil costing has a significant knock on effect and is a good example of the challenges that the ink producers have these days,” explains Jan Paul, “due to the high costs of phenolic resins, many ink producers introduced hybrids in 2011, which are based on a combination of Phenolic - and HydroCarbon resins. However due to the crude increases this cost effective alternative is gone. Unfortunately I believe we are running out of alternatives to protect our customers fully for the inevitable; costs will continue to rise in the next few years due to the trend of increasing raw material costs caused by the global increased shortages and the better cost / price management of the chemical giants. Further speculation on major commodities will only further serve to compound the negative price effect.”