Overall pigment capacity has decreased over the last several years and there is no indication that this will change. The pigment intermediate products derived from the refining of crude oil all continue to increase substantially in price and demand from other industries, which create a competitive situation for printing ink applications.
In 2011, ink manufacturers expect feedstock inflation, tight markets and shortages to continue. Ink manufacturers will likely see an increase in issues related to nitrocellulose, titanium dioxide, and additives, as well as persistence of the issues in rosin resin and some pigments. Oil prices are expected to be higher in 2011 and subjected to high volatility with petrochemicals and oil derivatives following.