“At a time when unprecedented demand, the impact of the Covid pandemic and import tariffs are increasing the cost of paint raw materials and packaging, we are freezing our Microsafe prices.
There’s no doubt that 2020 was a year that none of us are likely to forget. Some areas of trade were badly impacted, whereas others have proved very resilient, creating unprecedented demands. This and other factors have increased the demand for paint raw materials and packaging in the market, which has led to cost increases.
As a gesture of goodwill, we have decided to absorb these cost increases and hold our Microsafe paint prices. Microsafe is our highly effective, anti-microbial formula, proven to reduce SARS COV 2, the virus that causes Covid-19, bacteria, fungi and moulds on painted surfaces.
“Providing our customers with a paint solution to help make their homes and spaces more hygienic has never been more important. Holding our prices, despite cost increases, is another way we are helping to reduce SARS COV 2 and bacteria on surfaces.”
Adam Green, Co-Founder of Hanford+Green
WHY ARE RAW MATERIAL COSTS INCREASING?
Paint Raw Materials
On 11th January the BCF reported that sharp price increases for epoxy resins and supply bottlenecks are creating significant challenges for paint and coatings manufacturers in the UK and across Europe. This comes at a time when the industry is experiencing disruptions caused by the Covid-19 pandemic and added friction being caused by the new trading conditions the UK has with the EU, where 60% of the UK industry’s raw materials are sourced.
The BCF goes on to say: “Strong demand from some markets is driving up prices while an unexpectedly rapid V shaped recovery in China is also fueling demand for these essential raw materials. In addition, the situation is being compounded by a current global shortage of containers which has led to a sharp rise in transport costs from Asia to Europe, thus further restricting supplies to Europe.”
“This complex mix of higher demand, capacity and supply problems together with restricted availability of transport resources is increasing uncertainty in the market and driving up raw material prices sharply. On top of this, the coatings industry in the UK is faced with additional non-tariff costs related to the new UK customs arrangements with the EU for raw material imports.”
Metal Packaging Raw Materials
Raw material costs for paint tins have not been helped by trade wars between China and Australia driving iron ore, coking coal and tin prices up. When this is coupled with the fact that a great many of the tinplate suppliers are on very low margins it has driven the cost of tin plate up by 10% in 2021.
In addition, increases in freight container costs not seen in 20 years, increases in shipping prices and charges for delays at UK ports, are adding a further 15% to 20% onto the tinplate price. All of this inevitably means the cost of tins increases.
Plastic Packaging Raw Materials
2021 is also set to see continued price increases for plastic raw materials / poymers due to a shortage of supply and increases in transport costs.
To take advantage of our Microsafe price freeze, contact us on 01794 514 949 or [email protected]