For several months now our industry is under pressure, confronted with serious raw material shortages, historically high prices and delivery delays in the production of plastic products globally. A perfect storm of combined events is reported to have led to this situation, caused mainly by supply/demand imbalance affecting both plastic films and additives.
The trend towards tight plastics supplies had been building since the end of 2020 and worsened rapidly just before Spring. The situation reached alarming levels in March 2021, when many polymer producers declared force majeure.
The numerous sudden and significant shortages notifications had serious negative consequences with raw materials prices rising sharply and delivery times extending dramatically.
This situation is illustrated in the below Chart showing both LDPE and PP Resins Prices increase during November 2020 – March 2021.
_ _ _ _
During this entire crisis, our company is monitoring the situation on a daily basis. Using all of our resources to drive continuity, we stay focused on ensuring above all the availability of the raw materials and components required to meet our obligations to our partners.
As this on-going situation is not likely to stabilize soon, A. Hatzopoulos S.A. will keep you informed on any update, aiming to limit its impact as much as possible and to protect your supply chain.