CINCINNATI (Oct. 17) — Sun Chemical Performance Pigments will increase prices by 5 percent on flush colors sold into the North American market, effective Nov. 1.
The chemical industry is suffering from unprecedented volatility in the global energy markets and several factors have driven manufacturing costs to unforeseen highs, said Russ Henke, vice president of sales, NAFTA.
These factors include the detrimental combination of record high oil prices; global shortages in chemical intermediates, namely urea; and tragic natural disasters in the southern United States and in India, Henke said. Flush colors have been hit particularly hard with the increases coming from both pigment intermediates and vehicles, he said.
"While Performance Pigments continues to make energy efficient and quality maximizing manufacturing changes, it simply cannot absorb these rampant escalations," added Brian Leen, vice president and general manager for Performance Pigments.
The company emphasized that the increase does not cover its cost discrepancy. Sun Chemical would not comment on the possibility of additional increases in 2006.