THERMAL TRANSFER RIBBON PRICING INCREASE EXPLAINED
As customers are aware Thermal Transfer Ribbons are currently being subjected to industry-wide price increases and understandably many questions are being raised with regards to why this is happening. Rising material costs and constrained film supplies are the main contributors to the increase and here at TheRibbonFactory.co.uk we would like to further expand and explain this to our customers to provide some insight into the current market situation.
POLYETHYLENE TEREPHTHALATE AND THERMAL RIBBONS
Polyethylene Terephthalate (PET ) is the base film used in the production and manufacture of thermal transfer ribbons and as this extremely thin 4.5µ PET material makes up the majority of the ribbon it impacts greatly on its total cost. Globally there are only a few companies capable of manufacturing this ultra-thin PET film and throughout 2010 these manufacturers have reported significant increases in price.
WHAT ARE THE CAUSES OF PET COST INCREASES?
There are 2 main causes of the increase in PET costs :-
| Reduced PET Production Capacity |
| With the increased demand for applications such as smartphones, flat-screen televisions, e-readers and solar panels PET manufacturers arediverting their production capacity. The thicker films needed for these applications are more cost-sensitive and as a result more profitable for the PET manufacturer. |
| Increased Thermal Ribbon Demand |
| PET manufacturers reduced capacity for thin films after the economic downturn of 2009. With the economy improving during 2010 and demand once again increasing it has put a strain on the reduced level of thin film PET production. |
PET manufacturers are now aiming to improve the profitability of thin film PET material before they investments to meet the increase in demands. As a result, increases in the price of thin film are expected to increase further. All thermal ribbon manufacturers have responded with price increases over recent months and rising costs of waxes, resins and solvents has created an industry-wide problem.
As TheRibbonFactory.co.uk is part of the Etiquette Network we are committed to providing our customers with the low-costs and excellent value they have come to expect and will continue to endeavour to do so in the event of any further PET cost increases. Our hard-earned reputation as the UK's experts in self adhesive labels and thermal transfer ribbons has been built on outstanding customer service, support and an honest approach to providing the right solutions at the right prices. As a result customers can rest assured that whatever product they choose from Etiquette it will be the most cost-efective and reliable investment for their business - its why we put our name on it.
