EU Market for Polymers Under Pressure
ts objective is to build and maintain good communications between suppliers and customers of polymers and additives in Europe following the catastrophic situation during the first semester of 2015.
The monitoring of Force Majeure declarations globally of polymer producers by the Alliance showed an alarming increase in issued declarations by numerous polymer producers towards the end of 2020. Especially the supply situation for Polyolefins and PVC worsened significantly, making it difficult for converting companies to get the necessary material to keep their production running.
“The increased declarations of Force Majeure and rapid producer margin improvement resembles the situation at the beginning of the Force Majeure crisis in 2015.” Says Ron Marsh, Chairman of the Polymers for Europe Alliance. “We will continue to monitor the developments very closely to ensure the interests of the plastics converting industry are heard and to try to avoid a second 2015.”
With some polymer supplies getting very tight, plastics converters have difficulties to purchase the needed raw materials at reasonable prices and passing on the large price increases to their customers. Sandwiched between big polymer suppliers and users of plastics, the many SMEs that form the plastics converting industry remain in a difficult position to recover these price spikes.