Flint Group Addresses Raw Material Shortages and Cost Increases

The raw material markets have been very challenging since the beginning of the year. Many key material and feedstock producers began the year with depleted inventories and reduced capacities. The recession had caused many producers of specialty chemicals and feedstock to drastically cut back supply when demand dried up in 2008. After living through a number of years of very low margins, and then making the difficult choices of shutting locations, these producers found with a leaner operation and with supply matching much closer to demand it was possible to improve margins. Consequently, as demand picked up raw material producers as well as ink producers were forced to increase prices.