RAW MATERIALS
Raw material prices add to pressure
on profitability
A 23% hike in oil prices in 2017 together with further increases in the first few days of January 2018 means profitability in the paint
and coatings industry will remain under severe pressure. This combined with higher raw material prices, and in some cases supply
shortages, means it has been a difficult year for companies in the sector. Higher prices for resins and related materials, solvents and
pigments as well as some increases in packaging prices have all added to the pressure on manufacturers in terms of the materials
needed for the production process.
Source: BCF raw materials price survey
7%
Average increase
in 2017
Price increase
Price decrease
Covered Spring 2018
Estimated % changes in average purchase prices
in the last 12 months
13