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Because ink manufacturers buy relatively small volumes of raw materials compared to other users, they have little leverage in a competitive environment. “If raw material suppliers decide to favor more profitable outlets, prices will continue to rise, and ink manufacturers could even find themselves without key raw materials,” Parisi continued. “Since the beginning of 2006, we have seen dramatic increases in the price of cuprous chloride and phthalic anhydrate, both raw materials based on copper. Copper prices are 60 percent higher than at the end of 2005.”
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