Flint Group Packaging Comments on Current Ink & Coating Supply Chain Challenges for India, Middle East & Africa
13 December 2021: Flint Group Packaging, a leading provider of print consumables and equipment for the global packaging industry, has commented on the unprecedented supply chain volatility being experienced in its India, Middle East and Africa businesses.
Upal Roy, Managing Director, Packaging India, Middle East, Africa at Flint Group Packaging, stated, “It’s clear that the global economy is experiencing tremendous pressure with demand for products outstripping supply. Global raw material volumes and prices, along with freight availability are being heavily impacted. Compounded by the Covid-19 pandemic, transportation and raw material shortages are causing a multitude of challenges for ink and coatings producers in our region.
“For a wide variety of reasons, supply challenges are occurring for many critical raw materials used in the production of printing inks including Vegetable Oils and their derivatives, Petrochemicals, Pigments and Titanium Dioxide (TiO2). These products are all in short supply and causing significant issues in vendors’ ability to forecast and plan shipments.”
“Pigment prices, in particular, have surged recently due to increased demand from the architectural paints and wind turbine markets. Factory shutdowns in China, as a result of the Chinese Energy Reduction Program, have compounded the supply and pricing situation. With respect to Petrochemicals including UV, polyurethane & acrylic resins and solvents, costs for these materials have been escalating since early 2020, with some of these having demand increases outside of normal levels. The overall logistics situation also remains difficult.
“Jet fuel costs, for example, have increased as high as 8-10 times the norm along with shipping container costs, further exacerbated by unusual ocean freight schedules and freight carriers being stranded or challenged to find ports to offload containers. Ultimately, increased demand and ill-prepared logistics have caused a critical shortage of freight capacity. It is now clear that these supply chain strains are almost certain to continue well into 2022. Furthermore, we expect container prices, raw material shortages and cost increases to remain elevated into 2023.”
The Flint Group Packaging teams in South Africa and India welcome any discussions with their customers about the current and future supply chain situation and customers are encouraged to reach out to their key contacts within Flint Group.
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