The Germany-based industry association of companies producing sheets made of plastics and caoutchouc, Industrieverband Kunststoffbahnen Europe (IVK Europe, Frankfurt; www.ivk-europe.com), has expressed concern over the ongoing shortage of raw materials and rising prices in the plastics industry.

“Plastics manufacturers are continuously faced by major challenges due to the severe shortage of important raw materials and continuing price increases. At the same time, the demand for packaging for medical devices and food applications is still very high,” said the association, noting that its key areas of construction, car making and furniture manufacturing are particularly affected by the situation. In May, Germany’s builders reported even more supply shortages than in the two previous months (see Plasteurope.com of 08.06.2021).

There had already been concern in March over a further deterioration of the already-tense raw material situation resulting from supply shortages of key raw materials and speciality chemicals (see Plasteurope.com of 26.03.2021). Now, the association says it sees no easing of the situation in the market. “The lack of available raw material combined with high demand has dramatic consequences: the supply can no longer be fully guaranteed in parts of the production. In some cases, these supply bottlenecks even lead to the temporary shutdown of production plants. In addition, plastics manufacturers need to cope with extreme price increases, especially for polymers and additives.” The group added that it will continue to monitor the situation and related political courses of action.

Earlier this year, Plasteurope.com’s sister publication, Kunststoff Information (KI, Bad Homburg / Germany; www.kiweb.de) hosted a webinar on turbulence in the plastics markets, with experts explaining the background for the tense situation and discussing what converters can do to counter future raw material shortages (see Plasteurope.com of 15.03.2021).