Raw Material Shortages Continue to Impact Ink Prices
Crude Oil and Natural Gas
The U.S. EIA expects that oil markets will continue to tighten over the next two years given robust growth in global oil demand resulting in a drawdown of world oil stocks and a reduction of surplus crude oil capacity. World crude oil pricing will remain dependent on several factors including continued unrest in the Middle East and North Africa and its potential impact on supply; decisions by key OPEC member countries regarding their production response to the global increase in oil demand; and the rate of economic growth, both domestically and globally. Natural gas inventories remain high during 2011 but market begins to tighten and prices increase slightly in 2012 as industrial growth improves.
Vegetable Oils
Soya pricing has continued to trade up at the Chicago Board of Trade due to high demand and the link to crude oil (biodiesel). Linseed and soya oil are keeping pace with petroleum oil. Linseed is tight, with elevated prices based on low plantings levels in 2010. Initial planting estimates for this year show a return to normal acres, however recent weather issues in the U.S. could have an impact. It is important to note that farmers in Canada have planted significantly less this year which will likely cause increasing prices.