European ink market

This year, the demand for print in the European economy has slowly increased. There are many indications that the situation in the European ink market will begin to improve. But even so, ink manufacturers are very cautious about this year's forecast.

Economic outlook

At present, the European economy is a mixed economy. The economic growth rates of the United Kingdom and Spain far exceed those of France and Germany. Last year, the economic growth rate of France was only 0.2%, which was the lowest level in 10 years. In the last quarter of 2003, the German economy was still in a state of standing still.

Although Norway is not a member of the European Union, its price has fallen to its lowest level since 1960 for the first time because of its close economic ties with the European Union. In January, the largest price drop occurred in 1947. Because of the weakening of consumer demand in most countries of the European Union, the European Central Bank has had a hard time keeping interest rates unchanged.

Although economists predict that the GDP of Western Europe in 2004 will increase by 1.5% to 2%, which is equivalent to twice the previous year. The economic growth rate in France, Germany and Italy is expected to reach 1% to 1.5%, while in Spain and the United Kingdom, the growth rate may reach 3%. However, only a few experts believe that the growth of GDP in the entire region can strongly stimulate the health needs of the manufacturing industry. In particular, the increase in GDP will come from the service industry. The forecast is also unlikely, and what we need is a longer period of stability. ”

A recent survey by the Printing Industry Federation of the United Kingdom showed that the scope of their business has improved for the first time since January 2000, and the number of subscriptions has also increased, but the Federation is unwilling to make any clear prediction about this. . Cicely Brown, head of the association’s association activities, said: “What we have seen is only a sign of recovery. The key issue is whether this phenomenon can continue in the middle of the year.”

Price and cost

In view of the fact that printing companies are striving to increase sales prices and restrict the current situation of increased ink prices, ink producers can only strengthen management while reducing costs and achieving high-efficiency production.

Sun Chemicals has 16 sites in the United Kingdom of Great Britain and Northern Ireland. They have begun to increase production efficiency and closed a packaging and intaglio ink factory in Waterford near London last year.

Flint also made reasonable adjustments to its European subsidiary Flint-Schmidt. According to the Sikhbai Group, last year they stopped production of safety inks obtained from Flint and acquired Flint's safe ink business for currency and other liquid securities, while Flint acquired Sikh. Thanks to the global thermoset and coldset ink business.

Advertising and packaging ink market

According to London Power Communications, this year's advertising investment is expected to reach 3.7%, which is twice the 2003. This is BASF, Europe’s largest ink and pigment manufacturer in recent years. Kurt Bock, a major financial officer, said: “We believe that the worse situation in the third quarter of last year has passed, but it is too early to say any improvement.”

The confrontation between the euro and the dollar

At present, the biggest factor hindering the healthy and sustainable development of the European economy is the appreciation of currencies, especially the euro, the United Kingdom of Great Britain and Northern Ireland, the pound and the Swiss franc. Compared with the U.S. dollar, 12 European countries including Germany, France, Spain and Italy have increased their currency levels by 10% from last year and nearly 20% from two years ago. The continued decline of the dollar has impacted manufacturers' exports to the United States and Latin America and other countries and regions, and domestic pigment manufacturers are also facing fierce competition from imported pigments in Asia.

According to the statistics of the European Packaging and Printing Technology Association, in the past four years, exports other than packaging have risen to 1.5%, but the total sales revenue has decreased.

Did the printing industry get into trouble

In recent years, sales of many companies have been less optimistic. Before convinced that this situation will continue to improve, they hope that the current economic growth index can exceed the next few months.

A printing equipment manufacturer said: “At present, there are a lot of uncertain factors that affect the printing industry. In the past two years, many forecasts have proved to be wrong, so now let us give the appropriate first increase, It also predicts that the European advertising industry will continue to improve in most markets in the region by 2005 and 2006 after experiencing a period of downturn.

Compared with the slow economic growth in recent years, the packaging market has a tendency to rebound because of the large proportion of consumer goods such as food, beverages, personal items and cleaning products.

In addition, according to the European Printing and Packaging Association, except for the packaging market, the share of digital printing in the printing market will rise from 4% to 5%, and by 2013 it will reach 14%, while the growth rate in the packaging sector will be relatively slow. It takes about 15 years to reach 14% to 15%. This undoubtedly provides opportunities for the development of digital printing inks.

Establishment of EuPIA

The largest ink manufacturer in Europe has brought a more powerful influence on the current ink industry in Europe in the production of printing ink separation trading, and this year will be the beginning of this impact.

In March of this year, the European Printing Industry Association (EuPIA) was established in Florence, Italy. It is based on Sun Chemicals, BASF, Flint-Schmidt, Amber, Sikvell, Sikhbaa, and Akzo Nobel. The foundation was established. At present, the sales of these seven ink companies account for 90% of the total sales of the entire region.

EuPIA is working hard to become a leader in the European printing industry. Through the adjustment of various regions, it will stimulate the activities of the entire printing industry and protect the interests of paint and ink manufacturers to the greatest extent. Its other goal is to use the entire image and packaging supply chain to enhance the value of printing inks.

Unlike NAPIM (National Printing Ink Manufacturers Association), EuPIA is not completely independent, but is a member of CEPE (Commission of European Union Paint Manufacturers). One of his current tasks is to establish contact with other trade groups in the printing industry.

In addition, another major issue facing the European printing industry is the new chemicals management system proposed by the EU for chemicals and their downstream products. This system is called the REACH regulation. It includes about 30,000 chemical products on the EU market, and downstream products such as textiles, light industry, and pharmaceuticals, which are registered, evaluated, and licensed to three management and monitoring systems. The introduction of this regulation has made quite a few manufacturers of low-volume inks and coatings, lowering their higher test costs in the formulation process.

To this end, the European Parliament has reduced the testing requirements for some chemical products, so as to minimize the impact of REACH regulations on low-yield chemicals, but it also caused end-users, such as printers, to worry about this solution, so EuPIA It will also play an important role in the exchange of REACH regulations and user groups.

EuPIA will work with members of the European Parliament to discuss the specific meaning of REACH regulations. Perhaps in Europe, 2004 will be a year of continuous growth in demand for printing inks.

Reprinted from: Screen Printing Industry