Raw Material Shortages Affect Ink Prices
Soy oil has keenly felt the devalued US dollar as managed money pour dollars into commodities. A large South American harvest is coming into bins, and the US is just kicking off the planting season (with cold wet weather pushing us a week or two behind normal averages)
Colored Organic Pigments
Due to the supply rationalization that occurred during the economic downturn and the significant increase in organic pigment demand for higher end market segments, there is a tight global supply for organic pigments and key raw materials used to manufacture the pigments. In addition, the increased costs of environmental and regulatory compliance as well as high oil prices have increased the cost of basic chemicals and other raw materials (e.g. copper trading at an all-time high on the London Metals Exchange) used to manufacture pigments. The expectation is that this trend will continue throughout 2011.