As summer wanes and autumn draws near, storm clouds continue to gather on the horizon and creep closer with every new record for the Dutch TTF gas price. It is not a hyperbole to say that this winter looks quite harrowing for many commodity marketplaces, and Europe is ground zero for what on paper looks to be a seismic event that could lead to governments there deciding between heating homes and businesses operating. Let us hope the doomsday scenarios do not come to pass. Regardless, the situation sets up three themes that I think define the rest of 2022 and likely start the narrative that will be 2023:
The packaging supply chain needs to come to grips with inflation, but in a context few are considering at the moment – the sustainability movement. Escalating prices for recycled plastics were expected. Escalating prices for everything else was not, and that poses new challenges for those who transact in the plastic supply chain and those tasked with steering their companies’ plastics circularity objectives.