The European tube industry is under enormous pressure due to the recent rise in raw material prices and the shortage of plastics, according to the European Tube Manufacturers Association (Etma).
In the last 12 months (April 2020 - April 2021), prices for aluminium and plastics have skyrocketed by almost 60 per cent for aluminium and between 75 and 90 per cent for plastics such as HDPE, LDPE and PP, according to the Etma.
In addition, general capacity cuts in the plastics manufacturing industry, the increasing demand for plastics in the rapidly recovering Chinese and US economies and numerous force majeure cases declared by several plastics manufacturers in Europe have already led to a significant increase in the demand for plastics in Europe. led to a shortage of plastics for tube production.
In addition plastic materials recycled from used packagingthat are suitable for food applications, In short supplyThis makes it difficult to fulfil growing customer requirements.
Tube industry fights against exploding prices
The cost pressure in the industry was exacerbated by the exploding prices for cardboard, coatings and transport services further fuelled.
"The immense pressure is coming from all sides at the same time and poses a significant threat to the balance sheets of European tube manufacturers. This development represents a major challenge for our members. The packaging industry has proven to be an essential sector during the pandemic to ensure the continuous supply of essential goods such as disinfectants, food, pharmaceuticals and cosmetics to consumers. It is now essential that the smooth supply of goods in Europe is not jeopardised during an ongoing pandemic." Dr Fabio Gussoni, etma-President
These unprecedented challenges aside, European tube manufacturers are optimistic about the future. An increase in the speed of vaccination in Europe, more efficient testing, loosened mobility restrictions and rising temperatures towards summer will most likely allow more freedom for consumers and help their Positively influence purchasing behaviour.
This should also Boosting demand in the tube industry's key marketsthat have been hit hard by the pandemic, such as the premium cosmetics market. As incoming orders from the toothpaste, pharmaceutical and food sectors are promising in 2021, the industry continues to enjoy satisfactory demand in terms of volume.
Source: GDA/etma
