Facing the strong and steady increases of raw material prices, which can account for up to 80% of costs in the plastics packaging industry, the representatives of the German and French trade associations have decided to cooperate with the aim to find new solutions.
In 2010, shortage problems added to costs increases. While less cases have been declared since the beginning of 2011, the suspension of quarterly contracts for feedstocks of the polymers - ethylene and propylene - was the cause of a strong volatility of prices. Today, the prices of polymers are changing almost every month - instead of being fixed for at least a quarter. Insofar liquidity is a new and pressing issue.
Roland Roth, President of the German Plastics Packaging Association IK, and Dominique-Paul Vallée, President of the French Plastics and Flexible Packaging Association ELIPSO, have proposed several initiatives, including hedging.
They also insist on the fact that “the market should be brought to greater awareness that the risk concerning the costs for raw material is not to be borne by the packaging producers only.”
Apart from that, ELIPSO and IK are optimistic about the future of the plastic packaging industries in both countries. The Presidents agreed upon a regular cooperation concerning various issues, including a stronger communication and greater commitment to energy efficiency.
