More than 80% of packaging companies expect raw material prices to increase further in H2, German trade group IK finds; about 30% expect better turnovers, 52% expect situation to at least remain the same
April 4, 2012
– In the first quarter of 2012, raw material prices for plastics packaging have increased by more than 30 percent in some cases. And an end of this upward price spiral is still not in sight.
In the meantime, raw material manufacturers have announced further drastic price increases for April. This renewed price growth confirms the current IK Economic Trend survey. Over 80 percent of the respondents expect raw material prices to increase further in the second quarter of 2012.
For some plastics materials there also seems to be a lack of availability. Almost two thirds of IK members were confronted with supply shortages for raw materials. 43 percent received one or several Force Majeure announcements from their upstream suppliers. According to IK managing director Ulf Kelterborn, there is definitely some doubt about whether all of these Force Majeure announcements are legally sound. In some cases they refer to technical outages where an unexpected outside influence is not visible.
However, the IK Economic Trend survey also shows that companies assess their economic development for the second quarter quite positively. Around 30 percent expect better turnovers, 52 percent expect the situation to at least remain the same. Export development is also judged better than in the first quarter.