Plastic film prices likely to rise – PIFA
PLASTIC film prices are set to rise, warns the Packaging and Industrial Films Association (PIFA).
This follows a series of planned and unplanned cracker closures and the disruption of shipments.
The result is that polyethylene polymer producers have imposed an immediate price increase of about 10% and there is little likelihood of any early respite in the months ahead.
According to PIFA chief executive Jim Pugh, this situation could not have come at a worst time for the plastics film converters who are already bracing themselves for the swingeing effects of the Climate Change Energy Tax to be imposed from Apr 1.
"They have no choice other than to reflect these cost increases in their selling prices," he says. "With margins already wafer thin following two years of the most intensive competitive pressures, there is little room for further cost cutting by the converters and we may see more plant closures." *