The market for standard commodity plastics has been much calmer in November, particularly with respect to demand.
Many converters are exercising restraint in view of current price developments and only ordering the essentials. "Our customers can no longer accept any increases and are only buying their minimum quantities," one supplier explained to EUWID. It was nearly impossible, to pass on the higher costs for plastic granules in full to the end customers, and if it could be done, then only with a delay. At the same time, distributors report allocations on the part of the manufacturers. A growing number of respondents were saying that availability is being artificially restricted in order to keep prices, and with them, producer margins high.
In general, there is a lot of bewilderment in the market about this approach, especially since the commodity plastics were once again heading for record highs.
⇒ This is an excerpt from EUWID's monthly report on the German commodity plastics market. The EUWID Price Watch for November together with the complete report is published in EUWID Packaging Markets 24/2021.
