In a trading update issued ahead of its interim results for the six months to 30 June 2007, British Polythene Industries (Greenock / UK; www.bpipoly.com) says trading has been reasonable, although volumes have been somewhat sluggish and margins have been under constant pressure from attritional increases in polymer costs. The effects of a rationalisation programme earlier this year should bring the overall outcome for the 2007 first half to a little below the same period in 2006.

This, says BPI, will be a satisfactory result during a period of challenging market conditions and rising input costs. The regular monthly increases in polymer costs has made pricing difficult as the company has been unable to pass on all of the rises, leading to eroded margins. No decrease in polymer costs is envisaged for the next six months, although new capacity coming on stream globally is expected to lower price levels during 2008.