More than nine of ten European plastics processors are suffering raw material shortages, says industry group European Plastics Converters (EuPC, Brussels / Belgium; www.plasticsconverters.eu), and it warns that current resin pricing and scarcity could impact the food supply.

A combination of unprecedented prices for resins and tight supplies is hurting shops throughout the region, the association said, citing recent surveys of member companies. “Many are forced to reduce their production and accept less or no new customers to be able to honour their existing agreements. If this situation continues further, the supply of essential goods for the food and pharmaceutical industries will no longer be guaranteed.”

The warnings about food and other vital shipments followed similar concerns in March from the industry association Flexible Packaging Europe (FPE, Düsseldorf / Germany; www.flexpack-europe.org – see Plasteurope.com of 01.03.2021).

EuPC MD Alexandre Dangis said delivery issues have hit both resins and additives. “The serious market disruptions currently taking place all over Europe are a symptom of the structural imbalance in Europe between the local production of and demand for raw materials and additives. Without restoration of that balance, periodic recurrence of gross disruption of the production chain is highly likely.”

The association said that more than 50,000 SMEs in Europe’s plastics converting industry are under “severe pressure” and still recovering from the effects of the pandemic. Now, raw material scarcity “not only dramatically increased their cost of production but threatens to stop it altogether”.

A switch to recycled materials remains difficult or impossible for many shops as the reclaimed resin often falls short of technical or regulatory requirements. Even those who can use recyclate may have trouble finding it or are unwilling to pay for it as supplies have become scarcer and prices are also on the rise for both standard grades and engineering materials (see Plasteurope.com of 17.03.2021 and 18.03.2021).

The Turkish plastics industry association Pagev (Istanbul; www.pagev.org.tr) recently told processors in the country to stop buying virgin material until June in the hope that prices will begin to ease this summer (see Plasteurope.com of 14.04.2021).