A German plastics industry association says its members are more cautious about their economic futures, despite a slowdown in the increase in raw material prices.
IK Industrievereinigung says that even though the industry has noticed a recent drop in prices, it is still suffering from 18 months of rapid increases.
”Due to the rapid price increases in raw materials in the last 18 months, medium size plastics packaging companies were not able to pass them on to the market at short notice and in their full extent,” says IK managing director Ulf Kelterborn.
Therefore, most companies have backlog demand passing on raw material costs to the market despite the current stalemate with raw material prices, says the association.
Companies’ energy costs have also risen by more than 20%, it adds.
However, almost 50% of IK members questioned still judge the current economic situation as good. In the areas of turnover and export, over 50% of companies expect similar development to the previous quarter. According to the IK’s assessment, this means there is a good chance that the plastics packaging industry will reach pre-crisis levels by the end of the year in most product segments.