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.
Polymer Prices – plus ‘Polluter Pays’ plastic packaging
Why are pressure groups and ‘Personalities’ so much better at determining what the public thinks and influencing Government policy?
I am away on an extended break at the moment which gives me extra thinking time. For the last year or so I have noted the creeping disease of ‘demonising plastic’, particularly plastic packaging, and I make no apologies for re-visiting this subject, as eventually, unless we halt the trend toward constant criticism of plastic packaging, I believe the industry will suffer greatly.
Film prices are on the move again and Plastic Packaging is demonised again!
Film Price:- We suggested in January that film prices are likely to increase in the first ¼ of 2016 and unfortunately this forecast has been proved correct. Whilst the increases in Polypropylene prices have been relatively modest with just £50 per tonne in February and £75 per tonne in March. Increases in Polyethylene prices have been higher.
Brexit – Flexible Packaging – Winner or Loser
Whatever else is on our mind we are all going to be inundated with conflicting information on the Brexit question over the next 3-4 months. The EU has been described by one of the “Outers” as a corporatist statist institution essentially run by unelected functionaries in the European Commission and an unaccountable European Court in Luxembourg and that’s one of the better descriptions.
Prices – Profits and Procedures
It’s good to be back despite the differences in temperature between Cape Town and Bradford. Five weeks seemed a long time away until we had 2 days of freezing temperatures at home then it did not seem long enough.
First of all, thank you to those readers that E-mailed to ask when the next bulletin was due, my apologies for not explaining in more detail the reason for my absence. However, not much has changed on the film pricing front since December 2015 but you may like to consider the following figures and ask why?
2016 Quality, Hygiene and The New BRC Accreditation
BRC Audit Sharing Platform
We have expressed our concern on several occasions regarding the exponential growth in the size and number of Supplier Self-Audits we are required to complete. These have risen from just over 200 in 2013 to some 440 in 2015, with the demand for more and more information increasing year by year. This growth has, in my opinion, undoubtedly been driven by legitimate concerns within the industry regarding the stringency of the compliance criteria and monitoring required to achieve the BRC accreditation.
2016 – Be Sure to Check Your Mugs
We sent this out when many people were on holiday so for those who missed it, here’s a rerun.
In many ways 2015 has been an excellent year, as our readership has increased steadily throughout the year. So I take this opportunity to thank you for your interest & feel obliged to pass on a cautionary tale about the new problems which could await us in 2016.
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.