Throughout 2010 the market price of major raw materials used in coatings, such as epoxies, titanium dioxide, acrylics and metal-based materials has increased by up to as much as 50 per cent.
The surprisingly high global demand coupled with the downscaling of capacity following the 2007 financial crisis has caused an imbalance in the raw materials market for coatings, which has resulted in shortages of many raw materials and consequently caused prices to spiral.
Jotun Coatings expects that this situation will worsen in 2011, which began with the highest crude oil price since 2008, pressing prices further up on petrochemical-based raw materials and metal prices reaching new heights.
Jotun’s Divisional Marketing Director, Frank Nordby, said: “The industry-wide escalation in raw material prices has unfortunately been too big for us to absorb through other cost-containment measures. We would however like to emphasise that prices will only be adjusted for products directly affected. As always, Jotun Coatings remains committed to providing high quality products that offers excellent protection of our customers’ valuable property.”