The manufacturing cost of HPL and LPL may go high in coming months because décor paper manufacturers in Europe, China and Japan will ask increased price in the coming months. Several decor paper producers have set their sights on seeking additional mark-ups in the next round of negotiations about deliveries in October to December quarter after increasing their prices in during April to September month this year.
By way of explanation, manufacturers underscored a sustained an upward trend in raw material costs, titanium dioxide and eucalyptus pulp in particular. These costs have so far only been passed on to decor paper prices with a delay and not yet in full, according to décor paper producers.
Titanium dioxide manufacturers have largely managed to institute the price hikes announced in May for the market in Europe, benefiting from strained supply during discussions about third-quarter pricing. This marks the sixth quarter in a row that titanium dioxide prices have edged higher.
Rutile pigments used in decor paper productions have thus seen a 45% price increase since the second quarter of 2016 and are now selling at prices lastly registered five years ago on the titanium dioxide market in Western Europe.