Economic Slowdown in Europe
Results in Raw Material Prices Softening
A slowdown in
the econcomy
of Western
Europe, which is
causing falls in
sales of coatings,
has been the
main reason
for softening of
chemical prices.
by Sean Milmo
European Correspondent
smilmo@rodmanmedia.com
The relentless rise in raw materials costs, which has been hitting European coatings producers over the last 2-3 years, has at
last been easing. But the relief from the constant
pressure of rising input prices may be short lived.
The first signs of a flattening-out of price
increases across a broad spectrum of organic
and inorganic chemicals used in coatings formulations came last summer. Then in the fourth
quarter of last year prices of some key materials
began to go down.
Associations representing chemical and related sectors are predicting that in 2013 prices
will stabilize to stay at much the same level at
the end of last year.
A slowdown in the economy of Western
Europe, which is causing falls in sales of coatings, particularly in the decorative paints sector, has been the main reason for softening of
chemical prices in response to decreases in the
consumption of chemicals by coatings manufacturers and other key customers of the chemicals industry.
AkzoNobel’s sales from decorative paints in
Europe, its main market for decorative coatings,
declined by one percent in the third quarter.
Decorative sales declined across all parts of the
region, reflecting “severe weakness” of demand,
according to the company. In the company’s
performance coatings operation, demand for
wood finishes and adhesives and powder coatings also went down in Europe.
The company reported that during the quarter raw material costs were only slightly above
those of the previous year and compared to
rises in the second quarter had leveled out.
20 | Coatings World
www.coatingsworld.com
February 2013
