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FARBEN VERNICI

Pitture e vernici professionali, trattamento legno e metalli a base acqua o solvente mono e bicomponente

THE REASONS BEHIND THE STEADY INCREASE IN PAINT PRICES

May 10, 2024 | 0 comments

Throughout this year, there have been continuous and repeated increases in many of the raw materials used in the industry, along with a simultaneous difficulty in sourcing them:

  • In November and December 2020, there was an increase in isocyanate resins, a market where TDI and HDI producers have an oligopolistic position, leading to price hikes across all polyurethane-based products.
  • Solvents saw an increase of between 20% and 95% in just a few months. The shortage of butyl acetate and butyl acrylate, caused by production shutdowns due to COVID-19, more than doubled the cost, with consequent impacts on acrylic resins.
  • Epoxy resins increased by 52% in just two months (according to ISIS data).
  • Polyester resins went up by 15-20% due to the rise in prices for neopentyl glycol, adipic acid, and isophthalic acid.
  • Aromatic solvents typically follow the price trends of oil.
  • Long-haul transportation from the Far East experienced increases of up to 150%.

Meanwhile, there were additional “force majeure” declarations. Even though the producers took different approaches, they were all forced to mitigate the damage to avoid losing orders and contracts. In many cases, despite adjusting price lists, margins declined, and in some cases, producers were forced to replace certain ingredients, relying heavily on the skill and competence of their technicians and production managers. Those with more expertise and competence were able to minimize the impact, but as in all industries, the human factor remains critical.

It’s worth noting that the most famous and well-known brands do not necessarily have the best technicians.

Article written by: Ind. Exp. Massimo Rubbi – A.I.T.I.V.A. member, Emilia Romagna Region – CTU n. 48, Piacenza Court. Tel: 0039 3289205637.