Colour former shortage keeping thermal paper and label market on tenterhooks

Companies in the thermal paper sector
are paying the price of leuco dye shortage.
14 Mar 2018 − 

Converters are pushing for rising thermal paper costs to be passed on to the customers.

Thermal paper is still not freely available around the world. The primary cause of these supply problems is said to be the lack and higher price of leuco dye ODB-2 - the key component in making thermal paper. Experts are seeing ramifications of leuco dye being scarcer and more expensive in a wide swath of the market. Thermal paper and carbonless paper users are affected, but also label applications. The entire sector is feeling the effects of volume allocation and supply quotas being fixed, it is said.

According to thermal paper manufacturers, exploding prices for ODB-2 resulted in additional costs of many millions of euros for every paper mill. Therefore, paper manufacturers have recently announced another mark-up of 15% effective for deliveries as of March and/or April 2018. The new price hike initiative follows on the heels of higher prices already implemented in 2017 and at the start of this year.

Due to rising paper prices, thermal paper converters feel compelled to pass these higher costs on to the customers. Converters had to accept mark-ups for paper at short notice, as paper prices under contract had also been raised, EUWID sources said.

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