European markets too fragile to cope with polymer price increases

23-Oct-09

The recent sizeable increases in polymer prices do not bode well for Europes’ plastic processing industry. Infact, these sizeable price increases could be more than what the fragile European markets will be able to cope with. The European Plastics Converters Association (EuPC) opines that recent increases in polymer prices are jeopardizing the recovery of plastics markets from the recessionary conditions. Processors are not in a position to pass these hikes down the value chain to their customers. Since the beginning of the economic crisis in 2008, European converters have seen a 25% dip in volumes, volumes for polymer producers have slipped 32%, while the machinery makers have been the worst hit with a 69% decline in volumes.