Pressure on costs is increasing further

Pressure on costs is increasing further

Tougher environmental controls in the production of raw materials and intermediate chemicals in Asia, especially in China, are leading to higher prices for textile dyes.

Archroma says pressure on costs has forced it to make major price increases on a wide range of its dyes for the textile industry.

The main driver for the increases is growing pressure from increased environmental controls, which is leading to shortages and steep price increases for chemicals used in the production of dyes.

Examples of the most impacted intermediate chemicals include H acid, bromaminic acid and anthraquinone derivatives.

In fact, most dyestuff types have been impacted by the current raw material market situation, including those most widely used in textile manufacturing such as reactive and direct dyes for cellulosic fibres, as well as disperse, acid and metal complex dyes for synthetics and wool fibres.

"We have been faced with wave after wave of dramatic cost increases for critical raw materials and dye intermediate chemicals," explains Alan Cunningham, global head of textile dyes marketing, textile specialties business, at Archroma.

"Our latest discussions with major raw material and dyes intermediate producers confirm that the pressure on costs is increasing further. As a result we are faced with no alternative but to announce immediately a new wave of price increases across a wide range of our products."

These price increases will be effective immediately around the world or as contracts allow.