Raw Material Shortages Continue to Impact Ink Prices
Carbon Black
A second carbon black supplier was recently purchased by a private equity firm. This is the second major supplier to be sold this year. The first was acquired by a competitor resulting in a consolidated supply base. Crude oil escalation is applying further pressure to an already constrained market. The availability of carbon black for the graphic arts industry has been significantly reduced due to the ongoing demand increase for tires.
Titanium Dioxide (TiO2)
TiO2 continues its aggressive move upward as suppliers have announced their third increase for 2011; the latest a 10 percent announcement for June. Product remains tight and there is no available capacity for reallocation of volumes or growth. The increasing cost of energy, the ongoing consolidation of the market and the coatings industry are key drivers.