A phenomenon that has been observed since the 4th quarter of 2020 and that has become more pronounced since the beginning of 2021, the world polymer markets are experiencing a very worrying lack of supply and a surge in the price of plastics.
The market tensions are caused by the pandemic and a chain of emergency events. The reasons for this are mainly :
The capacities of our national petrochemical industry remain limited to meet the needs of the plastics sector and therefore make us very sensitive to fluctuations in the global import context.
The pandemic has disrupted trade flows and led to a global logistics crisis, as well as the increase in sea freight rates.
All of this has had a strong impact on the polymer market: we are seeing both price increases for plastics and longer delivery times.
The biggest increases are in the PP markets. Prices for PP, PE and PVC have more than doubled compared to the middle of last year.
The latest declarations of forces majeures in the US are adding to the global supply difficulty. We do not expect supply relief in the near future, particularly with the Saudi Arabian shutdowns scheduled for March, a lack of new supply from Iran and strong demand in the US and Europe,” the sellers estimated. (source chemorbis.com)
Regional suppliers of PP and PE closed their orders for the rest of the month in the second week of February against the backdrop of a serious shortage. The level of imports remains uncertain for the next 2 months, due to logistical challenges and equipment shortages.
The major supply difficulties and price increases must be taken into account in order to sustain activity.
In this harsh period, as much for prices as for the availability of raw materials, Capifil is doing everything possible in collaboration with its material suppliers to manage the weeks and months to come.
– It is important today to anticipate your needs and to plan your orders in advance, as far as you can, to enable us to secure supplies. Our excellent financial health allows us to commit to volumes with our material suppliers.
Provided your orders are confirmed in advance, we will endeavour to ensure the necessary level of supply, while keeping price increases to a minimum.
If not, we could undergo shortages and be impacted by market fluctuations and may have to postpone certain deliveries, depending on the situation. Capifil will keep you regularly informed of the evolution of the availability and prices of raw materials. The whole team remains mobilised to respond to your requests as best as possible.
The Capifil team.
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