A familiar inflationary cycle is being repeated across a broad spectrum of raw material markets due to both supply and demand dynamics. On the supply side, a number of factors are at play including shortages in raw material feedstocks, general destocking in the supply chain, reduced raw material manufacturing capacity and supply outages. Demand is being driven by emerging market economies in most cases from industries outside of the coatings market and as ever the price of oil remains a key driver. In addition to the tight supply and demand dynamics prices are being fueled by investor activity in the commodity spot markets.
A number of raw materials key to the manufacture of both marine and protective coatings products have been affected by the inflationary drivers including, epoxy resins, titanium dioxide, solvents, copper and other metals.