Raw material shortage in Europe
There is a shortage of plastic raw materials in Europe and the rest of the world. The plastics industry association Ikem reports sharply increased raw material prices and delivery difficulties.
According to IKEM, the problem is so great that there is a risk that Swedish plastics processing companies may be forced to shut down parts of their production. It is mainly the polyolefins, ie polyethylene and polypropylene, that are affected, but also several other material types such as PVC, ABS and polyamides are affected. The proportion of plastic material manufacturers who have declared force majeure is record high.
The turbulence in the market is due to a combination of sharply increased demand in combination with shortages in the supply of raw materials due to disturbances in the USA caused by the cold snap in Texas and imbalances in the transport system with container shortages.
Conny Tapper, responsible for material purchases at Mälarplast:
"Mälarplast works to secure materials regarding both supply and price picture and we still have a good stock situation of most raw materials for the coming months. In a few cases we have "on delivery side, however, most suppliers revise up the spot prices. We also contact customers whose products contain materials where we see a risk of a shortage situation."
The turbulence in the market is due to a combination of sharply increased demand in combination with shortages in the supply of raw materials due to disturbances in the USA caused by the cold snap in Texas and imbalances in the transport system with container shortages.
Conny Tapper, responsible for material purchases at Mälarplast:
"Mälarplast works to secure materials regarding both supply and price picture and we still have a good stock situation of most raw materials for the coming months. In a few cases we have "on delivery side, however, most suppliers revise up the spot prices. We also contact customers whose products contain materials where we see a risk of a shortage situation." 