The latest flash survey by the IK Industrievereinigung Kunststoffverpackungen shows that the situation in the industry remains tense. Since the beginning of the year, prices for standard plastics have risen by over 70 per cent.
The unbroken rise in prices and the continuing shortage of many plastics are putting further pressure on manufacturers of plastic packaging. A recent fifth flash survey among members of the IK Industrial Association for Plastic Packaging The end of May shows how extremely tense the situation in the industry continues to be: according to the companies, the prices of many standard plastics have risen by by over 70 per cent since the beginning of the year.
In addition, transport and logistics costs have risen sharply. In addition the shortage of important plastics packaging manufacturers continue to face considerable problems in production.
The shortage of raw materials continues to affect all plastics, although Overall, a slight easing indicates. 67 per cent of the participating companies report a currently poor to very poor supply situation - a month ago, the figure was just under 80 per cent. As in the previous month Eight out of ten plastic packaging manufacturers reduce their production due to the shortage of raw materials, one in five even to a significant or very significant extent.
Recyclates also affected by the rise in plastic prices
LLDPE and LDPE recorded the highest price premiums up to the end of May at +75 per cent and +74 per cent respectively, followed by PP, HDPE, PE, PA, PS, PVC and EPS (each between +67% to +71%). In some cases, the mark-ups are significantly higher than these average values. Also Prices for recycled plastics continue to riseSince the beginning of the year, prices for recycled PP, LDPE and PS have risen by more than 50 per cent. Recycled PET is on average 43 per cent more expensive than five months ago.
"The situation in the industry is and remains extremely tense," summarises IK-Managing Director Dr Martin Engelmann summarises the current situation. The historical peak prices for many standard plastics have largely decoupled from the price trend for petrochemical raw materials.
More transparency required in cases of "force majeure"
"The situation is further exacerbated by the continued Very high number of force majeure cases of plastics manufacturers," says Engelmann. Two out of three packaging manufacturers continue to be affected by one or more system failures at their suppliers. Compared to the previous month, this figure has actually risen.
He renews his Demand for more transparency and draws attention to an information letter for IK members on the legal requirements for a case of "force majeure": "Only if the suppliers describe the reasons for the system failure in a comprehensible and detailed manner can you expect understanding on the part of the customer," says Engelmann.
Source: IK
