News Flash :- Packaging Film Prices
We have recently carried out a survey of film manufacturers, including companies in Europe, Turkey and the Middle East.
The results obtained, suggest the benign pricing conditions which currently prevail will continue well into the third ¼ of the year. This price stability is despite a 5% decline in Sterling over the last 3 months, which presumably has been offset by a similar decline in the price of oil.
As a consequence, whilst Polymer prices have not fallen, there is undoubtably downward pricing pressure on the Polymer suppliers due to some overcapacity in the film Polymer market.
If history is any guide, some of this extra capacity will be closed at some point in the not too distant future to restore the usual supply / demand equilibrium. Meanwhile, now is not the time to be carrying high levels of stock as, whilst film prices are unlikely to fall, we certainly don’t foresee a major upturn.
This of course may all change at the end of October if a disorderly Brexit resulted in a plunge in Sterling. However, we are working on a customer by customer basis to review their required stock position through until November.
As ever I welcome your views on any of the points made and why not join me on LinkedIn for more regular contact. https://www.linkedin.com/in/barry-twigg-3a440b53/