Of the two percent of raw materials that don’t derive from petroleum or gas, some come from trees or crops, others from mines, and all are affected by supply and demand. In addition, the further from the original source a raw material is produced, the more steps and costs required to produce it, and the more complicated the supply-side becomes. For example, pigment feedstocks are intermediate materials which are further processed to create materials in inks. “BON acid (Beta Oxynaphtoic acid) accounts for nearly 50 percent of the material required to make most red pigments,” observed Diane Parisi, vice president of procurement for the Flint Group. “BON acid is five steps removed from its crude oil origins, and its price has jumped 20 percent since the beginning of 2006.”
- Companies:
- Flint Group