• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings

    Resins Update

    Coatings World Q&A: Eileen Weber of allnex
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    What Are You Reading?

    Teknos Receives EcoVadis Gold Medal for Sustainability Performance

    AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges

    Five PPG Facilities in Ohio Recognized for Sustainability, Health, Safety Practices

    Award for Sustainability: Evonik Receives EcoVadis Platinum Rating Again
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Launches HOMAX TEX>>PRO Texture System by PPG

    New Digital Solution from Interpon Helps Customers Bring Colors to Life

    Benjamin Moore Receives Two J.D. Power Awards

    Jamestown Coating Technologies Acquires Yenkin-Majestic Industrial Paint Business

    New Appointment for AkzoNobel Industrial Coatings
    Additives
    Binders
    Pigments
    Solvents

    DIC’s Indian Subsidiary Begins Construction of Coating Resins Production Facility

    Celanese Declares Force Majeure on Acetyl Chain and Acetate Tow Products

    Perstorp Group to be Acquired by PETRONAS Chemicals Group

    Birla Carbon to Increase North American Prices

    OQ Chemicals Announces Price Increases for Oxo Intermediates in the Americas
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Shepherd Color Company, The

    W. R. Grace & Co.

    Pilot Chemical Company

    Siltech Corporation

    Clariant Additives
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Utech Las Americas 2022

    CPCA Annual Conference

    PAINTINDIA 2022 Exhibition

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    UTECH Middle East/Africa Foam & Polyurethane Expo
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Shepherd Color Company, The

    W. R. Grace & Co.

    Pilot Chemical Company

    Siltech Corporation

    Clariant Additives
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Europe Reports

    Raw Material Availability, Price Increases May Be Biggest Issue for Coatings Industry in Europe

    In the last 12 months, restrictions already in place due to COVID-19 have generally limited supply chain operations worldwide.

    Raw Material Availability, Price Increases  May Be Biggest Issue for  Coatings Industry in Europe
    Related CONTENT
    • Miwon Specialty Chemicals Co. Ltd.
    • Revelli Chemicals Inc.
    • Vestolit/Mexichem Specialty Resins, Inc.
    • Metaflake Limited
    • Axalta Updates Financial Guidance
    The British Coatings Federation04.13.21
    Lack of availability of key raw materials and packaging and significant price increases are causing major disruption to the coatings industry in the UK and Europe.

    At the time of this writing, there is a real concern about whether coatings manufacturers will be able to maintain the supply of finished products to downstream manufacturing and construction in the coming weeks and months.

    Four significant trends are affecting raw material prices for the coatings industry in Europe:

    • Strong global coatings market demand and unforeseen capacity shortages have led to shortages of many raw materials
    • The oil price has risen by 100% in the last 12 months (currently $64 a barrel)
    • The global shortage of shipping containers has led to a sharp rise in transport costs from Asia to Europe thus further constraining supplies to Europe
    • Additional non-tariff costs related to the new UK customs arrangements with the EU are adding to the cost of imported raw materials into the UK from Europe.

    COVID-19 and Global Supply Chains

    In the last 12 months, restrictions already in place due to COVID-19 have generally limited supply chain operations worldwide.

    This has been exacerbated by the strong demand globally, both for chemicals in general and specifically in the coatings sector, which has recovered strongly in Q4 2020 and Q1 2021.

    Shipping containers have been very hard to source – again partly due to COVID-19, where shipping containers were not returned to Asia from other parts of
    the world.

    As a result, container costs went up sharply, had longer lead times and led to disrupted supply chains coming out of Asia.

    Since Q4 2020, the price of containers between China, the largest exporter of goods in the world, and Europe have risen more than 400%. 

    The Perfect Storm

    A series of unfortunate events took place from Q3 2020 in specific raw material segments, that have led to a domino effect through the coatings supply chain.

    There were sharp price increases for epoxy resins, of as much as 60% in Q3 2020.

    There have been similar issues following polyester resin factory closures in Singapore and Sweden, with an incident at a Chinese factory further adding to the difficulties.

    Problems have also arisen with bisphenol-A as stocks have been diverted to polycarbonates.

    Neopentyl glycol and methanol are also in short supply, exacerbating the issue.

    To add to this, since the beginning of 2021 up to 40 force majeures have been called by raw material suppliers, which is completely unprecedented. 

    This started with butyl acrylate, with three force majeures called in the first three months of 2021 at major chemical plants producing butyl acetate.

    Butyl acrylate prices have soared from €1,100 in December 2020, to €3,400 in March 2021 – a more than 300% increase.

    This has led to a knock-on effect in solvent prices for the coatings industry.

    The British Coatings Federation’s monthly raw material prices survey shows the largest increases in solvent prices in January 2021 versus 12 months ago are acetone (123%) n-butyl acetate (91%), IPA (41%) and n-butanol (54%).

    This was followed by the extreme winter storm in Texas, shutting down many North American chemical production sites through February.

    Whilst production has restarted, there is a significant backlog that is expected to last until the end of Q2. 

    Some of the key base chemicals affected include 2-Ethylhexyl acrylate, ethyl acetate and vinyl acetate monomer.

    As a result, further price rises were experienced. For example, Ethylhexyl acrylate (2EHA) saw an almost 100% increase, rising from €1,150 in December to €2,250 by March.

    Truly a perfect storm – the final chapter being a fire at a major chemical plant in early March in Germany has led to many additional force majeures, which again will have a significant knock-on effect on downstream chemicals used on coatings manufacturing in Europe.

    There are also concerns about pigment shortages, such as red and yellow iron oxide.

    For colored pigments, increases in petrochemical feedstock cost, coupled with the increased logistics costs have driven up the cost of finished pigments. TiO2 supply is already restrained, with limited supply flexibility beyond regular volumes.

    Similarly, plastic polymers are in short supply, again affecting the availability and prices of packaging.

    5L paint cans have had a 10% price increase compared to the same period last year, and tin plate has had a similar increase.

    Brexit Adds to Challenges

    With the UK leaving the EU on Dec. 31, 2020, the new trading arrangements have led to delays and higher prices. Two-thirds of respondents in a major BCF survey cited problems with increased shipping costs and customs paperwork.

    Following Brexit, ships are being diverted away from UK ports to Rotterdam, which has put pressure on feeder ships to move items around the UK.

    Over half of survey respondents were struggling with the impact of the new Rules of Origin on tariffs and had experienced delays to shipments of raw materials.

    It has also been reported that several suppliers are now adding Brexit surcharges to cover additional costs.

    Summary

    This perfect storm has created a very challenging environment for coatings manufacturers in Europe, which is not expected to ease in the short term.

    “Whilst the industry will attempt to mitigate higher costs through increased efficiency and alternate sourcing, they are still faced with the worst supply situation for chemicals that anyone can remember,” said BCF CEO Tom Bowtell.

    “Given that raw materials and freight comprise the majority of the overall cost to produce paints, coatings and printing inks, this trend will have a major impact on the coatings industry in Europe,” said André Vieira de Castro, chairman of CEPE.

    He concluded that “where possible, CEPE and BCF members will seek to mitigate higher costs via internal process optimization measures, alternate sourcing and increased efficiencies.”

    The British Coatings Federation is the sole UK Trade Association representing the interests of the decorative, industrial and powder coatings, printing inks and wallcovering manufacturers. Coatings are critical to UK industry, with 300,000 workers relying on its members’ products every day, and the UK is a net exporter of coatings and inks.  BCF’s members represent 95% of the UK sales of coatings, inks and wallcoverings. 
    Suggested For You
    Miwon Specialty Chemicals Co. Ltd. Miwon Specialty Chemicals Co. Ltd.
    Revelli Chemicals Inc. Revelli Chemicals Inc.
    Vestolit/Mexichem Specialty Resins, Inc. Vestolit/Mexichem Specialty Resins, Inc.
    Metaflake Limited Metaflake Limited
    Axalta Updates Financial Guidance Axalta Updates Financial Guidance
    Nippon Paint Marine Registers Spike in Turkish Drydockings Amid Asia Capacity Concerns Nippon Paint Marine Registers Spike in Turkish Drydockings Amid Asia Capacity Concerns
    Paint Specialist Flügger Maintains Momentum in Q1 2021-22 Paint Specialist Flügger Maintains Momentum in Q1 2021-22
    RPM to Hold Virtual-Only Annual Meeting of Shareholders RPM to Hold Virtual-Only Annual Meeting of Shareholders
    PPG Launches Virtual PPG Aerospace Academy Education Program PPG Launches Virtual PPG Aerospace Academy Education Program
    Lanco Paints & Coatings Expands in the Americas Lanco Paints & Coatings Expands in the Americas
    Indorama Ventures to Buy Brazil-based Oxiteno Indorama Ventures to Buy Brazil-based Oxiteno
    Sherwin-Williams Issues 2020 Sustainability Report Sherwin-Williams Issues 2020 Sustainability Report
    Global Advanced Bactericidal & Viricidal Coatings and Surfaces Markets 2021-2030 Global Advanced Bactericidal & Viricidal Coatings and Surfaces Markets 2021-2030
    Michelman’s Workplace Culture Honored Worldwide Michelman’s Workplace Culture Honored Worldwide
    Q-Lab Announces UVC Testing Capabilities at Accelerated Contract Test Services Facilities Q-Lab Announces UVC Testing Capabilities at Accelerated Contract Test Services Facilities

    Related Content

    • Miwon Specialty Chemicals Co. Ltd.

      ...
      Robert O'Toole, VP/Dir 10.29.21

    • Revelli Chemicals Inc.

      ...
      John Revelli, vp 10.28.21

    • Vestolit/Mexichem Specialty Resins, Inc.

      ...
      Mary Beth Nooney, Marketing Manager 10.13.21


    • Metaflake Limited

      ...
      Steven Kerr, Sales & Marketing Director 10.08.21

    • Breaking News | Financial News | Market Trends & Forecast
      Axalta Updates Financial Guidance

      Axalta Updates Financial Guidance

      Axalta updates financial guidance to reflect ongoing impacts of customer supply chain shortages and raw material and logistics constraints.
      09.22.21

      Trending
      • Teknos Receives EcoVadis Gold Medal For Sustainability Performance | Coatings World
      • Five PPG Facilities in Ohio Recognized for Sustainability
      • Asian Paints Reports 4Q, Full Fiscal Year 2022 Results
      • AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenge
      • Celanese Declares Force Majeure on Acetyl Chain and Acetate Tow
      Breaking News
      • What Are You Reading?
      • Teknos Receives EcoVadis Gold Medal for Sustainability Performance
      • AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges
      • Five PPG Facilities in Ohio Recognized for Sustainability, Health, Safety Practices
      • Award for Sustainability: Evonik Receives EcoVadis Platinum Rating Again
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Biocides Market Outlook - 2027
      • Lab & Testing Equipment Directory
      • Aerospace Coatings Market

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      GOED Creates Infographic Highlighting Omega-3 Health Claims Approved in Europe
      Kyowa Hakko Appoints Dr. Colin Hill to Immuse Scientific Advisory Board
      Expert Consensus Statement: Diet is Best Primary Intervention to Achieve Diabetes Remission
      Coatings World

      Latest Breaking News From Coatings World

      What Are You Reading?
      Teknos Receives EcoVadis Gold Medal for Sustainability Performance
      AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      MPO's Most-Read Stories This Week—May 21
      Iterative Scopes Expands its Senior Leadership Team
      Viz.ai Raises $100 Million in Series D Funding
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Piramal Pharma Solutions New API Plant in Canada Now Online
      MG America Appoints Claudio Radossi as President
      Catalent Invests $175M to Expand Mfg. Capabilities at Winchester, KY
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Authentic Beauty Concept Launches Second-Generation ‘Refill Bar’
      HASK Beauty Enters Exclusive Partnership with Amazon
      Garance Doré Launches Made in France Skincare Line
      Happi

      Latest Breaking News From Happi

      P&G Closes HQ Due To Security Threat, Launches New Hair Care Line
      SPF Setting Spray, Lip Contour and Knotless Braids Are Hot Trends: Spate
      Nutrafol Launches Collagen Infusion
      Ink World

      Latest Breaking News From Ink World

      Weekly Recap: Zeller+Gmelin, Sun Chemical and Kornit Top This Week’s News
      Nazdar Celebrates 100 Years with a New Look
      hubergroup Chemicals Exhibits at Paint India for First Time
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Brook + Whittle's new acquisition, SunDance goes to HP and more
      Specialty announces move to new facility
      Mark Andy hosts dealer's open house in Warsaw
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Weekly Recap: Kimberly-Clark to Expand Diaper, Wipes Production in Brazil; The Honest Company to Sell Diapers, Wipes at Walmart & More
      3M to Expand in Nebraska
      Nicely Offers Nonwoven Slitters, Winders
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      ODT's Most Read Stories This Week—May 21
      FDA Clears Anika Therapeutics' X-Twist Knotless Fixation System
      Paragon 28 Rolls Out TenoTac 2.0 Hammertoe and Soft Tissue Repair
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: Graphene Flagship, Japan Display and LG Display Top This Week’s Stories
      Evonik Launches New Processing Aids for PV Wafer Cutting
      NREL Creates Highest Efficiency 1-Sun Solar Cell

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login