Sun Chemicals, the largest producer of printing inks and pigments in the world, saw prices raised by 30% on all of their silicone based products as of May 2018.
“The ongoing silicone shortage has caused our suppliers to continue increasing prices beyond anything we have seen in recent years,” said Vice President of Sun Chemical, Dennis Sweet. He continues, “[w]hile Sun Chemical has utilized all its resources to offset these shortages and increases, we need to pass some of these increases on.”
Sun Chemicals isn’t the only one in the industry dealing with price increases.
According to the Alexander Watson Associates’ Annual Survey of Industry Professionals, the concern for the availability of raw materials is high among members of the industry. In addition, all respondents of the survey said they experienced cost increases throughout 2017, and most of them expect the costs to continue to rise throughout all of 2018.
In early 2017, Momentive workers began a strike that shut down the silicone manufacturing company for over 2 months, as well as shutting down silicone production in their German facility.
“Silicone facilities worldwide have fallen behind necessary demand,” said Alex Sechi, a senior account manager for BRB International B.V., a producer of silicone. “The demand has increased all over the world.”