STYRENICS
German plastics packaging industry association critical of price explosion / “Dramatic cost pressure”
Since the fourth quarter of 2016, plastics packaging producers have found themselves confronted with an across-the-board price explosion for styrenics. The situation for polystyrene is particularly dramatic, says plastics packaging industry association Industrievereinigung Kunststoffverpackungen (IK, Bad Homburg / Germany; www.kunststoffverpackungen.de). The European price climbed to an all-time high here in February. EPS prices also rose sharply.
IK feels it is also becoming quite clear, at the same time, that the current moderate price of crude oil is scarcely having an impact on the latest developments. Instead, the price surges are being dictated by greatly reduced refinery capacities in the wake of maintenance work at plants in North America and Asia. Given these imponderables with their global impact, no reversal of the trend is currently in sight. The packaging association is thus reckoning on the high raw material prices continuing for the full first half of 2017.
“The situation is a dramatic one for the processors”, says IK general manager Ulf Kelterborn. “The integrated raw materials producers, in particular, must act urgently to bring about an improvement in this unfortunate situation. And a key principle here ought to be maintaining a sense of proportion as far as the economics are concerned.” Polystyrene and EPS processors have ultimately found themselves under increasing financial pressure. In view of what are already very tight margins in many cases, it is essential to secure the survival of companies and their innovative capacity. Fortunately, an ever-greater number of customers are showing their understanding for this situation that is not of their suppliers’ making.
IK feels it is also becoming quite clear, at the same time, that the current moderate price of crude oil is scarcely having an impact on the latest developments. Instead, the price surges are being dictated by greatly reduced refinery capacities in the wake of maintenance work at plants in North America and Asia. Given these imponderables with their global impact, no reversal of the trend is currently in sight. The packaging association is thus reckoning on the high raw material prices continuing for the full first half of 2017.
“The situation is a dramatic one for the processors”, says IK general manager Ulf Kelterborn. “The integrated raw materials producers, in particular, must act urgently to bring about an improvement in this unfortunate situation. And a key principle here ought to be maintaining a sense of proportion as far as the economics are concerned.” Polystyrene and EPS processors have ultimately found themselves under increasing financial pressure. In view of what are already very tight margins in many cases, it is essential to secure the survival of companies and their innovative capacity. Fortunately, an ever-greater number of customers are showing their understanding for this situation that is not of their suppliers’ making.
09.03.2017 Plasteurope.com [236377-0]
Published on 09.03.2017