The rise since July 2012 - a trend that picked up speed in August and again in September - of prices for all plastic resins amounting (35% increase in 3 months) has dramatic consequences for most plastic converters, says Elipso, the trade association representing plastic and flexible packaging manufacturers in France.
In the context of a grim economy, these sudden price hikes are destabilising the industry and put strain on businesses’ cash.
“The consequences are extremely serious for many companies in the plastic and flexible packaging industry, in particular all the sectors where plastics are a major item in the trading account, such as the plastic film, bottle, closure or edible liquids industries,” claims the association in a release.
Indeed, such price fluctuations on this cannot be passed through rapidly to our product prices, creating substantial cash difficulties for companies.
Elipso therefore calls for a better cooperation within the industry in order to:
– Improving the vision and transparency in the channel’s supply & demand trends.
– Creating a good conduct charter for supplier-converter relations, particularly on the question of force majeure.
– Guaranteeing the channel’s supplies by the setup of preventive maintenance, security and modernisation measures on production tools in France and Europe.
– Boosting innovation, centred on more and more efficient materials.
“The call of emerging markets is of course a highly appealing, but it must not contribute to the destruction of a European plastics conversion channel that has enabled our suppliers to build up a sound experience and reputation, which is constantly growing worldwide through the innovations of its converters and customers,” adds Elipso.
