[Plastics] Plastics Price Alert

The UK plastics film and flexible packaging industry trade association, PAFA, has issued a price warning following increases of up to 50% in low and high point price differentials over the last 12 months for polymers such as LDPE, LLDPE and PET. It blames global economic factors including oil price rises for severely eroding margins for plastics packaging producers. "In 2009, we saw a 50.33% cost increase in LDPE with a consequent burden on our members which has now become intolerable," said Barry Turner, CEO designate of PAFA. "Regrettably, our customers will see significant price increases being passed through to them with immediate effect." The situation is also made worse by additional transport and allied materials costs.