Material costs for powder coatings hit suppliers

Britain's manufacturers of powder coatings, 100% solid paints, are suffering massive increases in the costs of raw materials - polyester, acrylic and epoxy resin prices have all risen sharply recently

Britain's manufacturers of powder coatings, 100% solid paints, are suffering massive increases in the costs of raw materials according to Moira McMillan, Chief Executive of the British Coatings Federation.

The knock-on effects of the continuing high level of crude oil prices is increasingly being felt with polyester, acrylic and epoxy resin prices all continuing to rise sharply in recent months.

For example, epoxy resin prices are up 40% in March this year while prices for propylene, benzene and cumene - all key feedstocks - remain at record levels.

Pressure has also been building on some pigment prices with BCF independently compiled monthly statistics showing big increases.

For example, the price of Pigment Violet 19 is up 30% in the last month and big increases are now coming through on titanium dioxide also.

Higher oil prices together with the huge increase in demand for raw materials from the Chinese economy have both had a major influence.

Other cost pressures have been coming from higher packaging, energy and transport costs.

Whilst these affect most sectors of industry, the problem of raw material costs remains the most pressing for powder coatings manufacturers.

In this industry, raw material costs make up a large proportion of total costs, accounting for in excess of 50% of all expenditure.

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