What’s behind raw materials price increases?
You may have visited your local graffiti, paint, art & craft, or hardware store and wondered why the prices of Montana Cans and other spray paints have risen. Of course the arrival of the Corona pandemic and the forced stoppages of many industries across the globe have something to do with it. It may also seem logical that those lucky enough to be forced to stay home with enough money to buy cans have gone painting or taken on DIY projects which intern increased the demand for spray paint globally. However, there are many factors that have led to this alarming new situation.
There are a lot of chemical ingredients in spray cans that are heavily used in other major industries. Crude oil alone plays a major role. Not just in your car, but it is also an essential ingredient for many products in the chemical industry. Chemicals you may or may not be aware of like Acetone, Ethyl Acetate, Methyl Acetate, Vinyl and Acrylic Emulsions in general, all play a role in the cans you hold in your hands. And most are made up of one or more ingredients that are reliant on the creation of another raw material derived from oil.
As an example one of the main ingredients in spray paint is acetone. Acetone is one of the main liquid ingredients in paint that keeps it fluid and helps it dry. It is a derivative of petrol manufacture, which is a product of crude oil and can only be produced in controlled quantities per year by its manufacturers. If world consumption of acetone increases, new plants to make it need to be created. Acetone alone increased in price by %230 last year! Partially due to polar ice storms which decreased temperatures so much that it was unsafe to produce, and partially due to the fact that the few producers around the world who make it were forced to go into lock-down due to the pandemic. Even the skyrocketing production of liquid disinfectants since the pandemic started (which is partly used in surface disinfectants) has pushed the demand for acetone without the ability to produce more. This is just to name one of many examples.
Once the world thought it came to terms with the Coronavirus and all its new considerations, some of us thought that things may be getting back to normal. That is until new challenges hit the producers of spray paint raw materials. Extreme weather of prolonged freezing temperatures played havoc on refineries and chemical producers who were forced to shut down and unable to produced materials safely. This created a domino effect worldwide.
The re-start of consumption of Asian-made goods meant that an extreme demand for raw materials, containers, and shipping space was also concentrated in that region. The result was Europe having an increase in demand for goods (such as spray paint) with decreases access to raw materials and no way to move what they could produce. And of course, in the development of all these trends, prices skyrocketed globally in every sector to cover demand, costs, and losses.
The good news is that although these developments are beyond our control, the research and development team at Montana Cans is constantly at work optimizing, adding value, and keeping the production prices of your favorite cans at a minimum. Like the creation of the new Montana SCHWARZ cans. We also strive to maintain the highest environmental standards while keeping the quality of our goods premium for your benefit and enjoyment.
Although you will have most likely experienced raising prices in just about every aspect of your lives, we thank you for your consideration and understanding in the development of our product range.
Frequently asked Questions
How do other major industries affect the prices of Montana Cans products?
All major industries such as the automotive and furniture industries are reliant on chemicals for all aspects of their production. If their supply on these chemicals decreases but their demand increases, it affects the prices of chemical products worldwide. For example, oils for cars, foam for seats & mattresses, coatings to paint and protect, or chemicals to create the glue that holds things together are just some of the contexts that major industry uses the same chemicals required to produce spray paint. If the price of these raw materials increases, so do many elements of our everyday life, including the cost of producing spray paint.
Why have the prices increased so drastically?
Believe it or not, the prices of spray cans have been below what they should be for nearly three decades. Regardless of the continual increase in prices of raw materials, can manufacturers, distributors, and re-sellers have all partially absorbed the price increases to try and keep the development in retail price as low and slow as possible. However, the current situation is extreme and was unforeseeable. Some chemical produces even stating closure or decreased production due to “force majeure”. Making the price increases required to maintain the stable production of spray cans greater and more rapid than the industry has passed on since the early 1990’s.
Are Spray paint suppliers making more money now?
The new trends in raw material prices does not mean that producers like Montana cans are making more profit on their products. The price developments are literally just to balance out the ever-increasing costs to produce the products that you love.
Will this affect the quality of Montana Cans?
To the best of our ability the quality and performance of Montana Cans will remain as high as it has been thus far. Our Laboratories and R&D teams are working vigorously to resolve any issues in raw material supply that may arise, as well as developing new technologies for a sustainable future.
When will this current situation end?
Although analysts can predict and diagnose the current state of raw material prices and demands, nobody knows when, if, or how these current trends will develop. As long as the elements of nature are in control of the weather conditions, producers, distributers, and re-sellers, are all working together to maintain the best supply possible, at the best possible price.