EATS expects further price increases in plastics products for Automotive interior

15-Jan-08

EATS (European Automotive Trim Suppliers), the Brussels based European sectorial organisation for decorative and functional surface materials for car and commercial vehicle interiors, is informing that the industry will be forced to increase the prices for polymer-based products as of January 2008. Newly elected EATS President Mr. Andersson, informs that ‘the two main reasons for this are the increasing raw material prices following from the high energy and oil prices, which have, in turn led to significantly higher prices for ethylene and propylene, used in plastic products.’ Recently the primary products for the manufacture of plasticizers have, also escalated in price. In automotive interior trim, plasticizers with special properties are used for PVC foam laminates and PVC synthetic leather. In a sector where raw materials account for sometimes up to 70 % of the selling price, the influence of oil prices is high. This is particularly so at a time of escalating demand for oil and polymers in the growing world economy. The fast growing plastics industries in China and India are leading to even higher polymer prices. Alongside the price increases announced by raw material manufacturers, supply shortages are already at this time anticipated for 2008.