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Wednesday, 18 September 2019
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Markets & companies, Coatings market

Raw material shortages impact powder coatings

Thursday, 21 April 2011

Increase in demand, combined with the supply shortages, will put even greater pressure on manufacturers leading to issues continuing to impact on powder coating manufacturers throughout 2011.

Huge increases in demand for certain raw materials in China have put the global supply chain under serious strain. Source: Maksim Shebeko-Fotolia.com

Huge increases in demand for certain raw materials in China have put the global supply chain under serious strain. Source: Maksim Shebeko-Fotolia.com

The British Coatings Federation (BCF) is warning that a shortage of vital raw materials used in the processes for manufacturing powder coatings has already constrained supplies of finished product to the market place. Increase in demand, combined with the supply shortages, will put even greater pressure on manufacturers leading to a continuing inflationary spiral with issues continuing to impact on customers throughout 2011. The BCF has already reported significant shortages of titanium dioxide due to limitations on the supply of ore and processing capacity by the major TiO2 suppliers. Now, the lack of capacity expansion announcements by suppliers is also hampering the industry’s ability to meet the positive long term growth trend for this important material in the global market place. Tony Mash, CEO of the BCF, has confirmed the Federation is worried about global shortages of key raw materials such as Epichlorohydrin (ECH) and Bis Phenol A (BPA) causing problems in the manufacture of epoxies. Huge increases in demand for these raw materials in China have put the global supply chain under serious strain, and the closure of ECH capacity in China due to waste water treatment issues has contributed to the problems faced by powder coating manufacturers.

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