Sun Chemical Applying Surcharges on Latin American Solvent-Based Inks, Varnishes

As a result of the recent COVID-19 pandemic, Sun Chemical Latin America will implement a surcharge on solvent-based inks and varnishes and will communicate the effective date directly to customers. Surcharges will vary depending on product types. The pandemic has caused a global shortage and supply volatility for raw materials throughout the world, most notably, solvents and alcohols. The supply, which had been previously limited due to an increased demand for ethanol fuel, continues to narrow as the coronavirus causes a further uptick in demand for pharmaceutical and sanitized products. Global availability is decreasing, resulting in increased prices. Due to these market conditions, Sun Chemical has accepted higher prices to secure its supply for the coming months. There is always a risk that governments may seize the materials to accommodate a health emergency, which would be out of Sun Chemical’s control.