Around the turn of the year there have been repeated increases in prices of various components and services in our presuppliers‘ markets.
We have been able to cushion these developments up to a point. However, it will not be possible to counter all cost increases through internal means of maximising productivity.
Besides the usual fluctuations for polymer granulates which are dictated by the price index, this affects the following areas:
According to industry information published in a range of trade media (e.g. German traffic publications Verkehrsrundschau and Deutsche Verkehrszeitung), these price developments are caused by various cost drivers. The biggest contributing factors are the shortage of drivers, rising traffic volume and higher labour costs caused in part by the new rest regulations.
These additives used for colouring plastic films result in their excellent whiteness, which is achieved by using titanium dioxide (TiO2). Ever since a fire occurred at a production plant in the Finnish city of Pori, whose capacity covered around ten percent of the entire European demand, there has been a steep increase in prices. Recovery of the full production capacity is expected to take until 2020, according to industry information.
As a result of the tightened environmental regulations and their dedicated implementation in China, there have been substantial price increases since the beginning of the year, e.g. for pigments. In addition, rising prices for crude oil and solvents caused an increase in listing prices for basic chemicals. The industry predicts the price development for these precursors to remain at a high level over the course of the year. In addition, the use of titanium dioxide (see above) in white printing inks affects the cost development accordingly.