The cost of many raw materials used in the manufacturing of coatings has increased over the past year. Since January 2016, for example, the cost of copper has risen by 34 per cent and the cost of zinc has gone up by 78 per cent (source: London Metals Exchange and ICIS Pricing). Titanium dioxide, another key raw material, has also shown significant increases in cost.
Raw materials constitute a major part of the cost of manufacturing coatings for the protective, marine and decorative industries – and, while Hempel does everything possible to mitigate these cost increases, there is a limit to how much can be absorbed. Therefore, Hempel has announced that it will increase its prices of selected products.
“There may be regional differences in some raw material costs, but the overall trend is very clearly up,” explains Lars Petersson - Executive Vice President & Chief Operating Officer. “We have limited the impact to our customers by working proactively with our suppliers, our R&D and our manufacturing set-up, but, as the trend is continuing, we have no other option than to increase the prices of some of our products.”