Cost of Raw Materials Force Paint Suppliers to Raise Prices
Over the last 12 months, the cost of raw materials used for manufacturing coatings have escalated significantly and affects the coatings industry worldwide, forcing Jotun to increase prices for marine-, protective- and powder coatings.
Raw materials like, Epoxy, Titanium dioxide and Copper have increased by more than 20% over the last 12 months, zinc metal prices have increased by more than 50% and Polyester resins have increased substantially. Positive economic figures from China, USA, Japan and EU has led to higher demand for some raw materials, at the same time as the supply-side have faced challenges. This combination drives marine-, protective and powder coatings cost significantly upwards.
“We saw this trend and strived to avoid a situation where prices on our products should be affected. But when the costs of key components continue to increase significantly over time, it leaves us with no other option but to raise the prices on our affected products”, says Geir Boe, Group Executive Vice President in Jotun Performance Coatings.
“We have tried to postpone price adjustments, and we are working closely with our suppliers with an effort to reduce the effect for our customers. However, at this moment we don’t see how we can absorb the cost increase anymore. We do believe that our customers will understand the situation”, Boe says.
The products and services herein described in this press release are not endorsed by The Maritime Executive.