Echoing the concerns recently expressed by the German plastic packaging association Industrievereinigung Kunststoffverpackungen (IK, Bad Homburg; www.kunststoffverpackungen.de) as well as its French equivalent Elipso (Paris; www.elipso.org) – see Plasteurope.com of 10.04.2015 – the European Flexible Intermediate Bulk Container Association (EFIBCA, Bad Homburg / Germany; www.efibca.com) has said that demand for flexible and intermediate bulk containers (FIBCs) is increasingly threatened by raw material shortages coupled with a recent string of force majeure announcements.

A number of raw materials suppliers have already reneged on their contractual obligations, the association points out, adding that, “As internal reserves deplete, this combination of steady demand with an acute and abrupt drop of supply sets the stage for near term price shocks.” The current situation further aggravates the stiff competition for raw materials between Europe, Asia, Africa as well as central and Latin America, EFIBCA said, pointing out that the end result is rising pressure on prices.

For many FIBC manufacturers, raw materials account for 60-70% of costs, and the impact of the recent price spiral can in fact threaten the existence of these companies, many of which are small and medium-sized. EFIBCA added that in this situation, companies have little choice but to pass the rising costs down the chain.

EFIBCA is only the latest in a string of European associations to raise alarm about the current situation. Similar concerns have been voiced by European Plastics Converters (EuPC, Brussels / Belgium; www.plasticsconverters.eu), the Fédération de la Plasturgie et des Composites (FEP, Paris / France; www.laplasturgie.fr), the British Plastics Federation (BPF, London / UK; www.bpf.co.uk) and the Packaging and Films Association (PAFA, Nottingham / UK; www.pafa.org.uk) – see Plasteurope.com of 07.04.2015.