Ink market: raw material prices are still the focus in 2006

Having witnessed the changes that took place in 2005, some people may ask what kind of situation it will be in 2006. Will there be a large ink company unite to stabilize the price of the ink market? Will there be more ink business mergers?

The answer is uncertain. But we can be sure that ink companies have to pay more, especially if raw material prices continue to increase.

One view is that the pressure faced by the ink market in 2006 will never be relieved. Although the cost of raw materials based on petroleum will be slightly reduced, the difficulties and pressures faced will never be reduced, so 2006 will be very difficult. One year.

Another view is that the pressure faced by the ink market in 2006 will be alleviated. As some of the major ink suppliers will put more effort into implementing the planned product price increase plan, their efforts may allow the ink industry to Earn more profit. In addition, the industry's difficulties will encourage ink companies to actively reform.

No matter what kind of predicament it faces, we still hope to see a more rational product price, which in addition to allowing ink suppliers to meet the growing needs of customers, can also better reflect the true price of raw materials and products.

In the face of this market pressure, we can see more ink company mergers. For example, after the successful acquisition of BASF's printing ink business, CVC has fully acquired Flint Ink, and the merger of the two companies will help strengthen the core competitiveness of these two companies in their respective fields. Currently, through the complementarity of products and sales systems, the two companies can perfectly combine business in North America and Europe. The merger of the two companies is a good thing for users, employees and shareholders. Also, Sun Chemical, one of the world's largest producers of printing inks and pigments, has acquired all of Rycoline's shares. According to Wes Lucas, chairman, president and chief executive officer of the Sun Chemical Company, the acquisition is part of the company's strategic plan to provide a "comprehensive solution" for the printing industry. If market pressures continue, we will see more mergers between small and medium ink companies in 2006.

There are too many “ifs” to predict the development of the ink industry. Of course, sustained economic growth is the main driving force for development. For the ink market, inflationary pressures and the supply of raw materials are the major challenges. Many industry analysts predict that the ink industry will experience slow growth in 2006, and ink company mergers will continue.

Clendenning summarized the development trend of the ink industry in 2006: “The ink industry will continue to develop in 2006. However, if the industry can't look far, but only hopes to completely offset the increase in raw material prices by increasing product prices, 2006 will It is a difficult year for development, and I really hope that the 2005 harvest and the merger between companies will help our industry develop better.I also believe that the merger between companies is not over, there will be more ink companies in 2006 merge."

Source of information: pack.cn