Pressure regarding raw materials.

The start of the year 2017 has been characterised by strong pressures regarding raw materials, at an international level, as a result of an accumulation of political and economic strategies, mainly in the United States and China.

Restrictions on acetones and factory shutdowns for maintenance are some of the events responsible for the strong increases and possible disruptions in supply.

La Fédération de la Plasturgie et des composites (The Plastic and Composite Industry Federation) is concerned about the situation and about its unpredictability: “The plastic producers’ sense of alarm has heightened as they believe the situation to be unpredictable as well as incomprehensible. They feel unable to plan ahead.”

60% increase in styrene

Styrene is present in ABS-PS and in polyester resins, and it has undergone a brutal and historical increase: +60% since October 2016. The strong Chinese demand is accompanied by a reduction in distribution which has altered the balances.

Evolution in the price index of ABS (base index of 100 in January 2013 – natural injection ABS)

evolution-indice-cours-abs

Example of ABS whose index has increased by 25% in 4 months when it had only increased by 6% in 10 months

Disruptions in acrylics

At the same time, capacity reductions caused by government decisions to reduce air pollution (COP 21 Agreements), above all in China, lead to extreme pressure regarding methacrylic and acrylic monomers, elements in the composition of resins without styrene. There are solutions.

The EBL commercial team is at your disposal to provide further information.

Source of the information:

  • Fédération de la Plasturgie et des Composites
  • The magazine Process