Tense EU market for polypropylene

Nonwovens leader Avintiv (previously PGI) will implement a price increase of up to 15% on its Terram geosynthetics speciality range in Europe.

The price increase is motivated by an unprecedented supply situation for key raw materials and strong cost increases. The supply of polypropylene, in particular, has been unusually tight in Europe for a number of months and manufacturers have responded to the high demand by increasing their own prices. 

At its recent annual meeting in Warsaw, the European Plastics Converters (EuPC) group launched a strategic alliance for polymer supplies in Europe. It is being formed in response to a series of force majeure declarations – the inability to meet shipping contracts – by EU polymer suppliers, which EuPC says has led to shortage of polymers on the European market. The EuPC says the alliance hopes to devise a strategy to prevent a repeat of the situation. 

According to the EuPC, since early March, companies within the EU polymer industry have declared force majeure on 34 separate occasions and “exacerbated an already tense situation on the EU polyethylene and polypropylene markets.”

The situation has driven polymer prices to levels not seen in the past decade at a time when oil prices are still relatively low,.

“The unavailability of certain grades of polymers and record polymer prices have forced some converters to close production lines,” says Alexandre Dangis, EuPC’s managing director. “The situation will continue to worsen if nothing is done.”

In the current climate of raw material shortages around Europe, Avintiv says it will continue to make every effort to ensure supply continuity and competitiveness for its customers.

Terram is a leading supplier of specialty geosynthetics and materials for the landscape and construction markets.