Ink giant forced to raise prices

Ink manufacturers are to push for further prices rises, after Xsys and Flint Schmidt blamed an upcoming 10% hike on a historically unprecedented rise in raw material costs.

The recently merged ink conglomerate this week announced European increases of 7.5-10% for heatset and gravure inks.
It is also planning rises for sheetfed, coldset and flexo inks, although a spokesman for the firm declined to give specific details on those products.

Wolfgang Blumschein, Xsys Publication Division vice president and general manager, said the rises were due to "an historically unprecedented rise in all our costs which was totally unexpected".

He said prices for resins, pigments, solvents and oil had increased by "double digit" percentages over the year, with some up by 50%.

Other ink manufacturers are expected to follow suit. David Ward, Stehlin Hostag UK joint managing director, said that he could not rule out price increases due to rising raw materials costs. "There has been no clear directive from group level, but the pressure is there," he said.

Michael Craine, Cranfield Colour managing director, said that as well as raw material costs, an "inexplicable and inexcusable" long-term decline in ink prices had led to the price pressure.

"Many suppliers have taken the attitude of 'Monte Carlo or bust' in that prices were produced on the assumption that demand would exceed output 24/7. Unfortunately, life is never as predictable, and finely costed pricing can turn rapidly into deep losses."

The inks squeeze
Ink manufacturers face "double digit" price rises for
- Oil
- Pigments
- Resin
- Solvents
Manufacturers also cite long-term price decline