Plastic firms in Germany expect raw material prices to soar
Germany-based plastic packaging companies expect higher raw material prices in 2012, according to a new survey.
The new survey by Industrievereinigung Kunststoffverpackungen (IK) [the German association of plastics packaging] said that nearly 40% of its members expect higher raw material prices this year, compared to last year.As a result, the association said that reduced profit margins have to be expected in the field of plastic packaging and the “market should react to this situation as quickly as possible”. Elsewhere, the survey shows that the plastic packaging industry has more positive expectations than was the case in the last quarter of 2011.
However, IK said that the turnover prognosis regarding individual companies is more cautious. The survey shows that while 66% of people asked expected a continuous turnover development in the first quarter of 2012, around 20% assume that turnovers will decrease. In the field of exports, a third of IK members expect further downturns. IK said that, in this respect, companies rely on a solid domestic economic activity (Packaging News,