A lack of raw materials and an unprecedented explosion in the price of plastics are putting plastic packaging manufacturers under massive pressure. A flash survey among the members of the IK Industrial Association for Plastic Packaging The end of March shows the dramatic situation in the industry.
84% of the participating companies report a poor to very poor supply situation - a month ago, the figure was 75%. Eight out of ten plastic packaging manufacturers have already had to reduce their production due to the shortage of raw materials. More than half of the companies expect medium to very severe supply disruptions over the next four weeks.
LLDPE and LDPE recorded the highest mark-ups in the first quarter of 2021 at +55% and +50% respectively, followed by PP, HDPE, PE, PS, PVC and EPS (each between +41% and +48%). In some cases, the mark-ups are significantly higher than these average values.
LLDPE and LDPE recorded the highest mark-ups in the first quarter of 2021 at +55% and +50% respectively, followed by PP, HDPE, PE, PS, PVC and EPS (each between +41% and +48%). In some cases, the mark-ups are significantly higher than these average values.
1st quarter 2021 - Weighted averages. Source: IK member survey 3/2021
„The situation in the industry remains extremely tense,“ says IK Managing Director Dr Martin Engelmann, summarising the current situation. The steep rise in prices for standard plastics can only partly be attributed to the increased prices for petrochemical raw materials. „The situation is exacerbated by the fact that two out of three plastic packaging manufacturers are currently still affected by one or more force majeure cases,“ says Engelmann.
Compared to the previous month, there was a slight decrease in this respect. However, he criticises the information policy of suppliers. „While some suppliers explain the causes of a system failure in detail and regularly inform their customers about the measures taken and time horizons, others consider the simple reference to »unforeseeable circumstances« to be sufficient to explain force majeures. When it comes to transparency, the industry as a whole must do better,“ Engelmann demands.
Source: IK Industrievereinigung Kunststoffverpackungen e.V.
