Flint Group VP Offers Insight on Raw Material Costs in 2012

“The ink industry is somewhat dependent on materials coming from China. Actually if you produce pigments, in China, India, Europe or the US, many of the intermediates are only available from China. Also for key intermediates for UV-materials and other specialty materials China has the key for the costs. Further 70 percent of the world production of Gum Rosin is Chinese origin. With the strength of the Chinese currency (Yuan) versus the USD and the ongoing 5 percent revaluation annually, pigments and all other Chinese origin materials will continue to increase in cost. Add to that the increased costs of environment in China and India, the container transport costs and for those based in Europe the weakness of the Euro and you already have quite a difficult cost scenario.”