The European Plastics Converters Association has warned that its members’ customers must recognise the need for increased prices for the plastics products they are buying.
Managing director Alexandre Dangis says: ‘Many of Europe’s 50,000 plastics converters are on the margins of viability following across-the-board cost increases particularly in raw materials and energy. If customers want a healthy supply chain able to invest in plant of increasing efficiency and innovation they must accept increases in the price of plastics goods purchased. We are now well beyond the limit where processors can absorb costs without interruption to business.”
Illustrations of the cost pressures have been reported to EuPC by several national member associations. Figures from France indicate that since January 2004 the price of PE has increased by 90 per cent whilst PP and PS have mounted by 63 per cent and 70 per cent, respectively. In The Netherlands, there are reports of recent raw material price increases of more than 20 per cent and in the UK, in addition to the material input price rises, processors are seeing up to 100 per cent increases in their energy bills as they move onto new supply contracts this autumn.
EuPC also points out that whilst the oil price has reduced from its earlier peak this will take time to feed through to raw material prices, if at all.
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