Price increases for raw materials are hitting UK plastics processors. Over 20 major moulders of plastics housewares met recently to discuss price increases of the high level, plus 40% increase in paper pulp. Producers fear that, by the end of the year, the price of PP, for example, will be £600-650/tonne (DM 1450-1575) – a rise of more than 50% on the December 1993 level of £400 (DM 970,-).

Food and drink package manufacturers warn also of "inevitable" price rises during the Autumn. UK-based Polarcup, part of the £1bn turnover Finnish Huhtamaki consumer products group, reports price increases of over 20% in PS and PP, which is buys for margarine tubs and salad and ice cream containers. Marketing director Simon Scrivens states that raw materials account for up to 50% of Polarcup's product sales price, so increases of up to 10% must be imposed.

Prices of plastics films must also rise, says the industry body PIFA (Packaging and Industrial Films Association), which represents 80% of UK producers. Minimum increases in polymer prices facing members average 25%, rising to nearly 50% on PVC. PIFA Chief Executive Jim Pugh says that increases of this size (which show the determination of polymer suppliers to get out of a totally uneconomic situation) cannot be absorbed by film producers. Buyers of printed films, particularly for food packaging, should brace themselves for price increases, he says.