Sun Chemical has increased the cost of its heatset, coldset and publication gravure inks after it was hit by ongoing raw material shortages and cost increases.

The ink giant will increase the products by a maximum of €0.25 per kg as of 1 March.

In a statement, the company said the industry has been "greatly surpassed" by cost predictions, with much larger increases passed on to ink manufacturers.

This is the second increase for heatset, coldset and publication gravure customers in 10 months.

Felipe Mellado, chief marketing officer of Sun Chemical, said the move is a result of price hikes in key raw materials, such as gum rosin.

He said this is being "continuously driven by Chinese suppliers", with further increases expected in 2011.

"Gum rosin is now three times the price that it was at the start of 2009. Also, continuously increasing oil prices are having a major effect. Crude oil rose 28% in 2010 and is now forecasted to rise an additional 15% in 2011."

He added that key raw materials such as ink, oils, distillate solvents and carbon black closely mimic the rise in crude.

Mellado said: "There are a number of factors at play that have led to the raw material shortages and subsequent rises in costs: the strength of Chinese and Indian currencies versus the dollar and the euro is having a major impact.

"Supplier factory closures earlier in 2010 are still having an impact on the availability of raw materials, as no significant expansion of finished pigments has taken place."

Production and environmental restrictions in both India and China are also playing a significant role.

As the industry is experiencing "unprecedented volatility" in the supply of raw materials, Mellado said Sun Chemical will need to review its prices continuously to ensure profitability and product efficiency.

He said: "The material supply figures and costs predicted by the industry for 2011 have been greatly surpassed with much larger increases passed on to ink manufacturers than expected.

"Indicators for the situation in 2011 do not show a very different scenario, in terms of limited supply. In general we are expecting a similar, if not more challenging situation as most of the drivers are structural changes in the chemical industry that will remain in 2011."

Elsewhere, M-real has also announced it will be increase the cost of all Kemiart white-top kraftliner grades by £45 per tonne in Europe, effective for deliveries as of 15 April 2011.

The paper and board manufacturer said the increase is a result of the continuous rise in production input costs and logistic costs.

Last week, M-real also announced it was to increase the price of its uncoated fine paper by between 6-8% as of 14 March.

Sappi Fine Paper Europe also said it will increase the price of coated fine papers by a minimum of 8% as of 1 March.