Raw materials have suffered huge increases, as much as 320 percent. That's why ANFFECC trade association president Joaquín Font de Mora sounded the alarm: essential raw materials, energy and transportation have suffered double- or triple-digit cost hikes.
With this framework, it is difficult to maintain proper profitability for manufacturers of ceramic glazes and colors. In addition, many of these materials are irreplaceable and therefore production is contingent on their purchase (at increased prices). According to Joaquín Font de Mora, "Cobalt oxide has increased in price by 210 percent, Praseodymium oxide by 320 percent, Zirconium oxide by 90 percent, Zirconium silicate by 75 percent, Chromium oxide and Barium carbonate by 80 percent, Zinc oxide and Titanium oxide by about 60 percent; quartz, kaolin and feldspars have increased between 40 and 60 percent."
Despite the positive signs reported for 2021, Spanish color manufacturers are thus experiencing a new time of distress.
Given the increases, it is very complex to be able to maintain productivity and protect profitability and growth. For Font de Mora, the increases "generate uncertainty and have a direct impact on both the income statement of companies in the sector and the ability to invest in R&D. The dollar-euro exchange rate is also not helping us, as the strengthening of the U.S. currency makes our purchases in this currency more expensive."
