What are the future market pricing trends and market capacity for the primary raw material you use? new raw material innovations?
Based on your knowledge of the raw material market place, please advise on future market pricing trends and market capacity for the primary raw material you use; and new raw material innovations.
Global raw material volatility is driven by geopolitical unrest, unsettled oil pricing, sluggish global economics, sustained unemployment. More specific factors include continued paper mill closure and consolidation as well as global consumption. China, and other emerging markets, create a continued demand for pulp which drive prices upwards. PET film and resin prices fluctuate; and more lucrative markets such as the demand for flat screen TVs create capacity issues for lower margin business like polyester face stock and liners. Liner recycling initiatives and the development of PET liner utilizing 25% recycled content have provide some relief in this area. Global supply and demand of acrylic monomers (used in the manufacture of acrylic adhesives) is creating increases. The largest cost drivers are petroleum and titanium dioxide (ink pigment).