European Plastics Converters (EuPC), the Brussels-based trade body for plastics processors, is calling for product prices to increase as converters continue to face soaring raw materials & energy costs. EuPC MD Alexandre Dangis said that many of Europe's 50,000 plastics converters are on the "margins of viability" & if their customers want a healthy supply chain with investment in plant & innovation then they must accept price increases. "We are now well beyond the limit where processors can absorb costs without interruption to business," he said. EuPC said processors in the UK have seen up to 100% increases in energy bills as they move onto new supply contracts this autumn & processors in the NL have reported increases of more than 20%. Figures from France indicate that the price of PE has risen by 90% since Jan/04; PP has increased by 63%; polystyrene by 70%. Figures from France indicate that the price of PE has risen by 90% since January 2004, while PP has increased by 63% and polystyrene by 70%. Although oil prices have fallen from their earlier peak, EuPC said this decline would take time to filter through to raw material prices. "The price of oil and its derivatives are at the mercy of international events risk and difficult to predict," said Dangis. "Cost increases need to be passed on in full and immediately they arise."
