Dear Valued Customers and Partners,
Fineland Chem would like to share an important update on the current pigment market and the potential impact of rising raw material costs on future prices.
Why Are Pigment Prices Under Pressure?
The pigment industry is facing increasing cost pressure as raw material prices remain high. Ongoing geopolitical tensions, including the conflict involving Iran, together with stricter environmental protection and safety requirements in China, have contributed to higher costs and tighter supply conditions across parts of the raw material market.
The cost of raw materials has now risen above the current selling price of finished pigments across the market. This has placed significant pressure on pigment manufacturers, making raw material procurement increasingly difficult and forcing some producers to reconsider or reduce production due to unsustainable cost levels.
When manufacturers reduce production or delay raw material purchases due to cost and supply pressures, market availability may become more limited. This can further affect the balance between supply and demand.
What Does This Mean for Pigment Prices?
Although some customers may perceive current pigment prices as already high, the cost structure suggests that finished pigment prices have not fully reflected the current level of raw material costs.
Based on current market conditions, we expect raw material costs to remain a key factor influencing pigment prices in the short term. We therefore see limited room for significant price reductions, while further price increases remain a possibility.
Please note that actual price movements will depend on raw material availability, supply and demand, and developments in the market.
Our Recommendation: Plan Your Purchases in Advance
For customers with pigment requirements over the next one to two months, we recommend reviewing purchasing plans early and considering a reasonable level of advance procurement based on actual demand.
Where appropriate, customers may consider securing approximately 20% of their anticipated near-term requirements as a precaution against potential price increases or supply constraints. This is a planning suggestion rather than a fixed purchasing requirement, and the appropriate quantity will depend on each customer’s inventory, consumption, and business needs.
Early planning can help reduce exposure to sudden market changes and provide greater flexibility in production scheduling.
Fineland Chem will continue to monitor raw material costs, supply conditions, and pigment market developments. We remain committed to keeping our customers informed and supporting their purchasing decisions with timely communication.
Thank you for your continued trust and cooperation.
Fineland Chem Team