- This topic is empty.
-
Posts
-
Mid-Year Consumables Market Update:
Imported Aluminum Offset Plates Under Siege.
As we cross the midpoint of 2024, it’s an opportune moment to reflect on the current state of the consumables sector—aluminum offset plates, paper, inks, and other essentials required for printing. Although the severe shortages and cost surges of the COVID-19 era are behind us, the market still faces pressures that vary across different types of consumables. Whether you’re experiencing stability or ongoing challenges, it’s crucial to stay informed about the key trends shaping the industry today.Paper Market: Navigating Persistent Pressures
Despite significant improvements since the pandemic, the paper market continues to face notable pressures. The industry is still adjusting to shifting demands, with many mills either closing or pivoting to other paper grades, particularly those used in packaging or household products like toilet paper and paper towels.“Paper manufacturers are grappling with increased input costs—energy, raw materials, and labor,” explains Jill Crossley, director of operations at Two Sides North America. “The combination of decreased demand and inflation has led to mill closures and transitions to different paper grades.”
Crossley highlights that since 2000, the capacity for printing and writing paper has dropped by 65% to 85% depending on the type, with similar trends observed in Europe. However, there is some positive news: paper demand and pricing appeared to stabilize at the start of 2024, allowing for better cost prediction by printers.
Yet, challenges persist. The rebound in demand for coated papers in early 2024 has been tempered by rising postage rates, which are affecting direct mail, publications, and catalogs. As a result, printers are increasingly opting for alternative paper options, often downgrading to more cost-effective grades. This trend is expected to continue as cost pressures remain.
Looking ahead, stability in paper prices is anticipated, with printers likely to encounter occasional short-term shortages due to ongoing mill closures. The demand and pricing for different paper grades will vary, so maintaining close relationships with paper mills and merchants will be crucial to securing necessary supplies without compromising margins.
Aluminum Offset Plates: Facing Tariff Turbulence
The aluminum lithographic printing plate market is currently embroiled in a contentious debate over potential tariffs on imported plates. Kodak is the sole U.S. manufacturer of aluminum offset plates, with the rest imported primarily from Japan and China.Kodak and the U.S. Department of Commerce are advocating for high tariffs, which could lead to significant price increases for manufacturers like FUJIFILM. FUJIFILM, in turn, opposes these tariffs and has filed a patent infringement suit against Kodak regarding process less plates.
The proposed tariffs are based on allegations that Japanese and Chinese manufacturers are “dumping” plates in the U.S. market at prices below production costs, thereby creating an unfair competitive environment. Kodak argues that this practice undermines U.S. manufacturers.
FUJIFILM counters that the higher prices in Japan do not justify the lower prices in the U.S. and that the proposed tariffs would unfairly impact American printers. A coalition of 12 regional trade associations has also voiced opposition, arguing that additional duties would increase costs for printers, reduce market competition, and affect the availability of quality printed materials.
The final hearing on this matter is scheduled for September 12, when the International Trade Commission is expected to make its ruling. The outcome will likely have significant implications for the aluminum offset plate market.
Ink Supply and Demand: Stability Amid Innovation
In contrast to paper and plates, the ink market has experienced relative stability. While there have been challenges, such as legislative efforts to ban Carbon Black, the overall supply and demand for inks remain balanced.Key trends include a growing demand for eco-friendly inks, driven by sustainability concerns; increased interest in specialty inks like neon’s and metallics, particularly in the digital printing space; and a continuing push for inks that dry faster and deliver higher-quality results. Packaging ink demand is also rising as commercial printers expand into short-run and prototype work.
However, rising costs for raw materials and supply chains are impacting ink prices. Although prices have generally been stable with gradual increases, this trend may shift due to fluctuating factors. Keeping an eye on the ink market is advisable to anticipate potential changes.
While the consumables market has stabilized significantly since the pandemic, challenges persist. Paper, offset plates, and inks each face their own set of pressures and trends. Commercial printers should no longer feel the need to stockpile supplies excessively but should remain vigilant and work closely with vendors to navigate the evolving landscape of the consumables market through the rest of 2024 and into 2025.
- You must be logged in to reply to this topic.