Raw materials shortage puts the S.A. Coatings industry under heavy pressure

A serious shortage of raw materials, coupled with substantial increases in prices for raw materials, has put the South African coatings industry under intense pressure, says Tara Benn, executive director of the SA Paint Manufacturing Association (SAPMA).

Benn says a complex mix of demand; production issues at global chemical plants; and scarce transport resources for key raw materials are hitting the supply chain with resultant enormous implications for an industry already badly hit by pandemic lockdowns last year.

The main reasons for the coatings raw materials shortage and price rises in SA are:

· An increase in demand for paint and raw materials from neighbouring SADC markets which lost a significant supply of imported material from China, India and the Middle East due to Covid-19 shipping restrictions. “Companies in the SADC then turned to SA to provide alternative supplies which, although providing welcome new business, nevertheless drained local supplies,” Benn explains;

· Heavy snow storms and sub-zero temperatures in the USA that forced several key US raw material suppliers to halt production;

· The closure of several plants in Europe during lockdowns which led to raw materials suppliers invoking “force majeure” to contractually break supply obligations; and

· Soaring transportation costs due to the sharp rise in oil prices and shortage of containers. “The pandemic lowered commodity demand and therefore the traffic and volume of containers moving geographically between regions decreased. As demand picked up again, sea freight costs skyrocketed. SAPMA estimates that on average sea freight costs have gone up by 40% to 55%.”

Tara Benn, executive director of the SA Paint Manufacturing Association (SAPMA)

Benn says according to the European Paint Council, CEPE, the shortage of raw materials is an “immense burden” for the coatings sector worldwide as raw material prices account for more than half of the cost of finished products. Since January last year, costs for key components such as epoxy resins have risen by 60% in Europe, while among solvents, prices have soared by up to 123%, CEPE has estimated.

“The current situation is exacerbated by the unexpectedly rapid economic recovery in China, which is also fuelling demand for key raw materials,” Benn added.

Global raw materials shortages erode cement and concrete additives supplies



Latest


21 Apr 2021
Paragon Interface creates a new way of work for Deloitte at The Ridge

Following on from its successful completion of Deloitte’s new Africa headquarters at Waterfall City in Midrand, Paragon Interface has just…

Paragon Interface creates a new way of work for Deloitte at The Ridge

Following on from its successful completion of Deloitte’s new Africa headquarters at Waterfall City in Midrand, Paragon Interface has just completed a new workplace for the professional services firm at The Ridge at the V&A Waterfront in Cape Town. This was a high-profile project for the interior architecture company Paragon…

21 Apr 2021
Hansgrohe Vernis – quality at a competitive price

Vernis taps are a new addition to the hansgrohe family with a unique twist. Designed by world-renowned Phoenix Design, Vernis brings you hansgrohe quality…

Hansgrohe Vernis – quality at a competitive price

Vernis taps are a new addition to the hansgrohe family with a unique twist. Designed by world-renowned Phoenix Design, Vernis brings you hansgrohe quality at a competitive price. The range comes in two sleek, stylish design variants and takes the stress off you if you need to watch the budget, even though it still…

20 Apr 2021
SAPMA welcomes election of World Coatings Council Executive

UK-based Tom Bowtell; who works closely with, and has often attended, the SA Paint Manufacturing Association (SAPMA) events in SA,…

SAPMA welcomes election of World Coatings Council Executive

UK-based Tom Bowtell; who works closely with, and has often attended, the SA Paint Manufacturing Association (SAPMA) events in SA, has been elected vice president of the World Coatings Council (WCC). Bowtell is Chief Executive of the British Coatings Federation which has for many years made extensive parts of its…

20 Apr 2021
Fire shuts down one of Gauteng’s largest hospitals

A fire that broke out at the dispensary store of the Charlotte Maxeke Academic Hospital in Johannesburg on Friday 16…

Fire shuts down one of Gauteng’s largest hospitals

A fire that broke out at the dispensary store of the Charlotte Maxeke Academic Hospital in Johannesburg on Friday 16 April took the entire weekend to extinguish. One of the biggest hospitals in Gauteng, it will be closed temporarily for a week to assess the situation. More than 400 patients…


Top stories


27 Feb 2020
The Nxuba wind farm Renewable Energy

In its ongoing efforts to showcase the potential that renewables can play in boosting the security of energy supplies in…

The Nxuba wind farm Renewable Energy

In its ongoing efforts to showcase the potential that renewables can play in boosting the security of energy supplies in South Africa, Enel Green Power (EGP) highlights its commitment to the country as it nears the completion of its Nxuba wind farm in the Eastern Cape. The company recently started…

23 Jan 2020
Refurbishment at North West University

As the three established divisions of Norcros SA, TAL, Johnson Tiles and Tile Africa recently played important roles in an…

Refurbishment at North West University

As the three established divisions of Norcros SA, TAL, Johnson Tiles and Tile Africa recently played important roles in an extensive tiling project at North-West University’s Potchefstroom campus in North West Province. The project entailed refurbishing the five-block Sports Village, a guest house facility providing accommodation for the public, athletes…

06 Mar 2020
7 Awe-inspiring marble use cases

Marble, an exceptionally versatile material used for centuries to create awe-inspiring art, majestic staircases, classic kitchens and resplendent flooring. With…

7 Awe-inspiring marble use cases

Marble, an exceptionally versatile material used for centuries to create awe-inspiring art, majestic staircases, classic kitchens and resplendent flooring. With today’s contemporary design trends, the wide selection of marble can be used in more ways than ever before.

05 Mar 2020
First Green Key Boutique Hotel in South Africa

21 Nettleton attains their Green Key Award from WESSA, becoming South Africa’s first boutique hotel to achieve this accolade for…

First Green Key Boutique Hotel in South Africa

21 Nettleton attains their Green Key Award from WESSA, becoming South Africa’s first boutique hotel to achieve this accolade for its efforts in sustainability. An exciting partnership between WESSA and 21 Nettleton has resulted in the private boutique hotel in Clifton, Cape Town being awarded the prestigious Green Key award.…


Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za