BCF: Severe Raw Material Shortages Affect Supply of Paints, Inks

The supply of several important chemicals, including ingredients used in paints, coatings and printing inks has been severely restricted following a major incident in Jiangsu Province, China. An explosion and fire in March, which resulted in nearly 80 deaths and injuries to hundreds of people, spread to nearby facilities and led to a massive evacuation. The Chinese government has forced the shut-down of factories at the industrial park, as well as others nearby, to allow for investigations and safety inspections. The impact is affecting the paint and printing ink supply chains, with severe shortages of key components such as preservatives for water-borne paints, photo-initiators for UV-inks and certain red and yellow pigments. It is not known when the closed factories will be able to re-open and what their future capacity for these raw materials will be in it.

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