National Flexible - Twigg´s Times
With a wealth of experience in the packaging industry at the most senior levels, Barry Twigg - National Flexible´s major shareholder and CEO – shares his thoughts and ideas about the latest trends.
News Flash – LyondellBasell Forecast Polymer Shortages
You read it here first!:- Earlier in November we said the “3 Force Majeur” closures already announced last week suggested that we could be in for a repetition of this years capacity closures. This suggestion was despite the glut of oil slushing around the market the major polymer manufacturers would maintain their margins by closing capacity. As a consequence we repeated the advice we gave in October, which was to buy film forward at todays prices, at least until the first ¼ of 2016.
Force Majeure – Polyolefins; Here we go again & Printer/Convertor Profits
HERE WE GO AGAIN!
Just when we thought that “Force Majeure” had gone out of fashion we have three announcements in the last 2 weeks confirming polymer plant closures. You may recall these “Force Majeure” shutdowns (there were 40 of them during the Summer) were the major reasons for the film shortages which occurred mid-year, along with the escalation of prices. These all occurred at a time when oil prices were flat thus inflating
2016 – Budgets – Film Prices – Film Supplies – Film Developments
As budgeting time approaches we are often asked by our customer for our views on the Flexibles Market for the coming year and 2015 has been no exception. In these circumstances we felt it may be helpful to summarise our views on the key market trends in flexibles for any of you (or your customers) who could find the information of interest.
Polymer Prices – Continue to Defy Gravity + Plastic Recycling Paranoia
First of all, many thanks to those of you who gave your comments on LinkedIn on our latest Twigg Times post, they were very welcome.
Currently I am away on my Autumn sojourn into the Algarve, a place where there are no daily deliveries of milk, newspaper, post or weekly collections of domestic refuse.
Here we all take our rubbish to central collection points, where we conscientiously sort it into the various constituent parts for recycling. After which it is picked up from the various collection points and then for the most part all dumped back as a job lot into landfill, amazing!
The ‘system’ really got me thinking about the realities of waste recycling, particularly plastic waste, but more on that later
Polymer Prices, Profits and Plastic Bags
Where to start? The above histogram highlights that Polymer prices are still defying gravity and remain just 1% below their record highs of June. This is despite the fact that oil prices have fallen some 20% since May and are down circa 60% year on year. During the same period, Polymer prices have risen 5%.
News Flash – Polymer Profits – Nice Work if You can Get it!
We have long contended that polymer supply is a “Rigged Market” where the large petro-chemical companies control supply to maintain prices. The latest evidence we have to support this contention are the financial results for Basell the market leader and Dow Chemicals, a top 3 supplier.
Polymer Availability – Film Prices, M & A Activity And Plastic Bags
As recently as April it was suggested by Basell, the petro-chemical giant, that film Polymer may have to be put on allocation due to production problems.
At that time we said, “We don’t think this will happen! Inevitably, film prices will increase but with oil at just 54 dollars per barrel we believe the current margins for polymer suppliers are just too good to miss. They will simply re-introduce some of the closed production capacity as the polymer price increases currently being implemented are made to stick”
Polymer Prices & More: The Fat Lady is Not Singing
There is considerable ambiguity in the stories circulating regarding the availability of polymer supplies to film manufacturers. Whilst some tell us that the situation is gradually returning to normal, others have suggested this is basically due to imports from the Middle and Far East at prices higher than normal. What is certain is that there has been limited information available on the reintroduction of the polymer production plants closed claiming ‘Force Majeure.’
Polymer Prices: Record Highs in June
Resin prices for both OPP and PE polymers have reached record highs in June. Although the increases applied have been only 40-60 Euro cents, these increases follow those applied in March, April and May. The resultant prices are the highest yet reached for OPP, HDPE and LDPE polymer.