Shortage of raw materials: tension in the plastics industry.

18 May 2015

In a phase in which the transformers in the plastics supply chain are engaged in a relentless pursuit to raise, showing a trend in contrast to the continuing difficulties of other industries, some of the world’s leading petrochemicals have decided the use of Force Majeure declaring the stop of the production at their plants.

The shortage of raw materials affects irreversibly the activity of small and medium-sized transformers, which are often facing cancellations of already confirmed deliveries, that actually cause temporary suspensions of production and the consequent inability to fulfill contractual obligations to their customers.

The scarce information contained in the declarations of Force Majeure makes it difficult to ascertain whether or not the necessary criteria for the validity of this state and carries the transformers to suspect that behind the closures there is actually a speculative intention.

The Federation of rubber plastic recorded in Europe, starting from January 2015, as many as 10 appeals to the Force Majeure involving producers of Polypropylene (5), High Density Polyethylene (3) and Low Density Polyethylene (2) with a consequent and uncontrolled increase in the prices of these as well as of other thermoplastic polymers of wide consumption such as Polystyrene.
This is very alarming considering that, in an area such as packaging, the cost of raw materials accounts for more than 60% of the total cost of the product.

Distribution companies unfortunately do not have any useful tool to fight this situation.

Arcoplex Group and its companies are reacting actively to fight the shortage of raw materials and ensure their commitments to their customers, drawing on the diversified stock of products obtained by means of planned purchases.

Excessive gap between supply and demand, unfortunately, in addition to making difficult the future procurement activities continue to affect irreparably the price level, which unfortunately discomfort will soon affect the entire manufacturing system until it reaches the final consumer.

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