EuPC Says Material Shortages Still Hitting Plastics Converters in Europe

The head of the European Plastics Converters Association (EuPC) says he believes that mounting raw material cost increases sustained by Europe's plastics processors will potentially slow down recovery in the industry for 2011.

“Plastics processors in Europe are still suffering despite improvements in overall business conditions,” says Alexandre Dangis. “For some plastics, we are facing price increases of up to 30 percent in the period November 2009 to November 2010. There are still widespread reports of material and additives shortages and processors not being able to get the material to enable them to deliver on their projects.”

A key background factor has been the increased number of dubious Force Majeure declarations, according to Dangis. As previously announced, he advised converters to legally challenge some of these Force Majeures at national level. “We will certainly keep a very close eye on this development,” he assures.

Added to this, the surge in demand in China is taking away material.

“I'm expecting discontinuity in supply in Europe to extend at least until the first quarter of next year,” Dangis predicts.

Speaking at a Marine Litter Workshop in the European Commission he added, “At the same time Europe is exporting large volumes of plastics waste to the Far East one has to wonder if plastics recyclate will not be of a more strategic importance for European converters in the years to come.”

“European politicians in Brussels will announce very soon their plans on resource efficiency for Europe,” says Dangis, but he questioned the political will in Brussels to keep manufacturing in the EU. “A solution must be found to ensure for appropriate material supplies being it plastics raw material, additives or plastics scrap.”

It makes no sense from a sustainability point of view, Dangis says, to continue to increase and stimulate the exports of European plastics scrap - paid for by the consumer - and which is benefitting business and employment in other parts of the world and hurting our industry in Europe.