A BAD SITUATION JUST GOT WORSE

Posted on 29 Mar 2017

Film Shortages – Market Update

A BAD SITUATION JUST GOT WORSE

“Panic Buying” by Major Film Convertors was said just two weeks ago, to be the reason why delivery dates for film orders were being extended, in some cases Bulk orders for film were being reduced by up to 80%.

At the end of last week, we were informed by two of our suppliers, that not only was there are a shortage of polymer but there was now a shortage of many additives and masterbatches utilized in film manufacture.

The same companies also notified us, at the same time, of further price increases on all film grades with a minimum of £80 per tonne on commodity grades and up to £120 per tonne on Special Films. This is the fourth increase notified since January and we are told there may be more to come unless Polymer supplies are increased.

In these circumstances we are more interested in securing on-going supplies of film rather than disputing price increases, as we are confident that those suppliers we have will ensure prices are adjusted down when the situation returns to normal.

This is the first time to our knowledge that prices of China and the Far East have risen faster than those in Europe and the Middle East, so the current poor supply situation could last longer than normal as there will be few Asian imports to alleviate any shortages which occur.

Please be assured we will make every effort to maintain continuity of supply, but meanwhile we cannot take bulk orders at current prices as price increases are inevitable.

Should you want any further information please contact your Area Sales Manager and/or your Customer Champion. As ever, any thoughts or comments you may have will be welcome and I take this opportunity to invite you to join me on LinkedIn where we do give further updates.

LinkedIn