Raw material markets under pressure

Many companies are reporting rising prices, short-term market movements and a generally nervous procurement climate. The principal drivers cited are geopolitical tensions, higher energy and logistics costs, and bottlenecks in key intermediates. On top of this, price movements are currently taking place at very short notice, leaving market participants with only limited scope to prepare for new developments. European industry associations point explicitly to rising raw material prices, unreliable supply chains, significantly higher logistics costs and diminishing predictability in procurement. For crude oil-based intermediates such as binders, solvents, resins and additives, price increases of up to 100 % have been reported.

Since mid-March 2026, announcements of price rises for raw materials and intermediates supplied to the coatings and printing inks industry have also multiplied in connection with the crisis surrounding Iran. Initially, these communications focused mainly on general references to higher raw material, energy, freight and logistics costs. Since late March, and especially in early April, however, the link to tensions in the Middle East has in several cases been made far more directly. This shows that price increases in this market have been communicated with growing frequency since mid-March 2026, and that the connection to the Iran and wider Middle East crisis has become increasingly clear over the following weeks.

Associations Warn of Persistent Cost and Supply Pressure

The assessments of the industry associations confirm this picture. Across Europe, associations warn of a noticeable burden caused by high raw material prices, longer transport times and growing supply chain uncertainty. What is particularly critical, from the associations’ point of view, is that the current cost pressure is hitting an already subdued demand in key customer industries.

At European level, the situation is assessed in similar terms. For the printing inks industry in Europe, attention is being drawn to increasing risks for raw material availability, energy supply and logistics. The background to this includes disrupted shipping flows around the Strait of Hormuz, rerouting via the Cape of Good Hope, transit times lengthened by some ten to fourteen days, as well as higher insurance and freight rates. At the same time, petrochemical derivatives such as solvents, binders, resins and additives are becoming more expensive as a result of higher crude oil prices.

New Measures Intensify the Cost Pressure

That this trend is continuing is also illustrated by a recent move from PPG. In mid-April 2026 the company announced a global price increase of up to 20 %, which, according to PPG, is already being implemented. The reasoning given is a rapidly deteriorating global cost environment, particularly in petrochemical raw materials, energy, transport and packaging. Although this announcement does not go into the same level of detail as other industry references to the Middle East situation, it clearly fits into the current wave of cost and price increases.

Against this backdrop, feedback from European manufacturers carries particular weight. The assessments from companies across the continent show just how strongly international cost and supply impulses are now feeding through into the day-to-day operations of the European coatings and printing inks industry.

Bottlenecks Primarily in Solvents and Petrochemicals

The strain is most clearly visible in solvent-based raw materials and in petrochemical intermediates such as binders, resins and additives. In these areas there are not only tangible price increases, but also extended lead times and constrained availability. In some cases, quota allocations are already being reported; in others, supply is still largely assured, but only with growing delays and considerably less planning certainty. Announcements from the industry associations expressly support this assessment.

It is precisely in these product groups that market disruptions take effect particularly quickly, because they occupy a central position in the value chain. Even minor disturbances can propagate along the supply chain and lead to noticeable strain on production, stockholding and customer supply. The result is a market that is still functioning in parts, but whose stability is coming under increasing pressure.

Price Wave and Structural Weaknesses

What is particularly striking at present is the dynamic on the price side. Within a short period of time, many market participants have been confronted with a wave of price increases that is coming through on a weekly or even daily basis. It is not only raw materials themselves that are becoming more expensive, but also transport and logistics-related services, through additional surcharges or modified freight terms, for example. Developments around longer sea routes, higher war risk premiums and rising energy costs are reinforcing this effect.

Several voices from the market point out that these developments are not driven by acute shortages alone. Structural weaknesses along the supply chains are also becoming visible: thin inventory buffers, heavy dependencies on individual sourcing regions and, overall, limited capacity to respond in strained market situations. In such an environment, geopolitical disruptions or uncertainty about energy prices and transport routes are enough to amplify price movements significantly.

Companies Respond with Adaptation Strategies

Companies are responding with a bundle of measures. These include, above all, price adjustments, the targeted build-up of safety stocks and a broader diversification of the supplier base. At the same time, procurement is in many cases being organised more strategically and flexibly in order to respond more quickly to short-term market changes.

Formulation optimisation and the use of alternative raw materials are also gaining in importance. Where possible, dependencies are being reduced and substitution options assessed. In addition, there is closer dialogue with suppliers and customers to ensure early transparency on price developments, availability and risks. In doing so, companies are seeking to safeguard their ability to act in a market environment characterised by uncertainty and short-term volatility.

Uncertainty Remains High

Despite these measures, concern remains considerable that the situation could escalate further. Particular attention is being paid to the impact of geopolitical developments on energy prices, petrochemical intermediates and international transport routes. Many companies therefore find themselves obliged to plan at shorter notice, adapt their decision-making processes and continuously review their risk strategies.

Experience from earlier crises helps companies to respond in a more robust and structured way. However, a sustained easing of the situation is not currently in sight. Rather, what is emerging is a market caught between still-functioning supply and mounting pressure on costs, availability and planning certainty. The developments since mid-March make clear that the price dynamic can no longer be explained by general market mechanisms alone, but must increasingly be viewed in the context of the geopolitical situation in the Middle East.

The assessments from the industry paint a nuanced yet clear picture overall. Supply has not been acutely interrupted in most places, but the pressure on purchasing, production and costing is increasing noticeably. Price rises are being communicated more frequently and at shorter notice, lead times are lengthening, and uncertainty about further developments is growing.

The industry thus faces a twofold challenge: on the one hand, companies must keep current supplies stable; on the other, they must adapt their structures in order to respond more rapidly to further disruptions. The raw material markets therefore remain a central factor of uncertainty for the coatings and printing inks industry – and a subject that is likely to continue occupying companies intensively in the weeks ahead.

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