Europe plastic converter body sees higher prices

11 September 2007 17:46  [Source: ICIS news]

LONDON (ICIS news)--High oil prices, a shortage of raw materials and an increase in demand will push up plastic prices, the European trade body for plastics converters EuPC said on Tuesday.


“For the past two years, our manufacturers can’t rely on their orders of raw materials being executed,” said managing director Alexandre Dangis.


“No delivery due to declarations of force majeure by the raw material supplier occurs on a regular basis, while the partial delivery of 80-90% of the purchase orders for certain raw materials is a widely accepted fact of life,” he added.


There is escalating demand for oil and polymers and the fast growing plastics industries in China and India are leading to even higher polymer prices.


"In a sector where raw materials account for 30-70% of the selling price, the influence of oil prices is high," he said.


Since December 2006, the prices of polymers and additives have reached record levels and users of plastics products should expect a further 15-20% increase in prices, Dangis added.


By: Lucy Craymer
+44 20 8652 3214

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