Assovernici reports that the difference in energy costs between the USA, Asia and Europe is creating a competitive gap.
Assovernici, the industry association that represents the Italian paints and coatings producers, has recently published a report that draws attention on how the difference in energy costs between the USA, Asia and Europe is creating a competitive gap for the parties involved.
Assovernici indicates a constant strain on all the components used in the paint and coatings field that is causing a substantial negative repercussion on the sector, which represents one of the main driving forces of Italian production with an estimated annual turnover of around € 2 billion and a workforce of almost 10,000 employees. Italy also ranks first in Europe in the production of powder coatings for industry and occupies the second place in the production of paints for construction.
The exponential progression of price hikes that started in 2020 was consolidated in 2021 and affects the whole range of raw materials. For example, since January 2021 the cost of pigments such as titanium dioxide has risen by 60%, solvents and epoxy, acrylic, vinyl and alkyd resins by 100%, packaging by 25% to 50% and plastic pallets by up to 100%.
The spiral of growth in the prices of raw materials and transport is made constantly worse by the rising cost of energy and by the sharp inflation triggered by the war in Ukraine. Increases reaching 100% and more are striking Italy and the rest of Europe, while the United States of America and the Asian region are not suffering as much.
The forecast for the next few months remains highly inflationary, given the high degree of uncertainty deriving from considerable risk factors, such as the continuation of the war in Ukraine and a possible stop to Russian gas supplies to Europe.