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Polymer Prices update: - Borealis add insult to injury
1-3% Increase in Volumes – 400% increase in Profit.
Just a short update on last weeks comments on the ‘excess profits’ of the polymer suppliers. Borealis, another of the top 5, reported a 400% year on year increase in European profits on volume increases of just 3% for PE, only 1% for PP.
However, margins were up 67% for PE and 78% for PP. There is no criticism implied of companies making higher profits by winning more work and increasing volumes, but these record results like those of their ‘competitors’ are predominantly due to the company taking advantage of its customers by disproportionately increasing their prices to take advantage of what has been a very difficult period for the flexible’s industry.
It will be interesting to see if the polymer companies continue with these price escalation policies or bring their margins down to more realistic levels.
Meanwhile, I would welcome your views and why not join me on LinkedIn for more regular updates.
https://www.linkedin.com/in/barry-twigg-3a440b53/
#donthateplastic
1 Comment
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Kevin Smith
Hi Barry, unfortunately the result of a free market economy without any regulatory body. I feel we as manufacturing companies are at the mercy of corporate oligarchs and they are culpable for the the inflationary figure we are now seeing, which are counter to the government’s policies aimed at curbing inflationary pressures ! Small manufacturing companies such as mine, meet with enormous resistance to any price increases, exacerbated by the pricing still on offer from the pacific rim region ! For sure, if we were to ship from this region our cost has increased five fold. However , the major retailers do not suffer the same costs ! As a consequence of all of what’s going on, I and my employees are squeezed to the hilt financially. Minimal increases to customers and only cost of living increases for employees. A major reset of our economy is long overdue !