Ink makers blame oil for price rise

The skyrocketing cost of oil is identified as the primary culprit responsible for the impending price rises. Both Sun Chemicals and Flint Ink have already announced increases in the cost of their inks, while local manufacturer Coates has indicated that a price hike before Christmas is inevitable.

David Rands, managing director of Coates Australia, claims manufacturers have up until now absorbed rises in the cost of raw materials used to manufacture inks. “However, this trend can not continue on for much longer,” he says. “Any manufacturing industry that uses oil will inevitably see increases, so it will not be long before we see some movement.”

Rands claims the rises will differ from product to product, and assures customers it will not be a proportionate reflection of the mounting cost of petrol. As a broad approximation he expects prices to rise by around five per cent, as little as two per cent on most inks but as much as 10 per cent on specific products.

Flint Ink North America has already confirmed that price rises on all of its product lines will be effective from October, in an attempt to offset the escalation of raw materials, energy and freight costs. Flint Inks in Australia declined to comment on how price increases will impact its supply of inks in the local market.

The US company’s heatset web offset and publication gravure inks have both risen by 12 per cent, while its solvent packaging, energy curable and commercial/sheetfed inks are all up by 10 per cent.

Bill Miller, president of Flint Ink North America, insists the company has taken extensive measures to ensure a consistent supply of products to its customers. “But our industry and its suppliers have been caught at the centre of global shortages and rising demands for crude oil, natural gas and their by-products, as well as many other raw materials that are key to the manufacture of printing inks.”

Sun Chemical has simultaneously announced price increases in North America of 9 to 12 percent, also effective by October and attributed to rapid increases in raw material prices and shortages.

Michael Griem, president of Flint Inks North America, says “given the rapidity and scale of cost increases, we are forced to implement price increases to cover basic costs that are not expected to drop any time soon and issue surcharges by industry segment.”