The plastics market is currently undergoing a period of unprecedented market instability. The cause is a combination of factors impacting raw materials, production plants and the supply chain, all at the same time. The results have been dramatic; shortages of some basic component raw materials and precursors have resulted in shortages of basic resins. This has been compounded by the extreme weather events in the USA that have closed production plants, especially in Texas and the gulf coast, but also impacting plants around the world.
The impact has led to numerous production plants and resin suppliers reporting force majeure as prices have spiraled upwards, with one increase impacting another. The entire plastics industry seems to have been taken by surprise by the extremely rapid developments, especially the price increases, but we are also now hearing worrying noises about product availability and the reliability of supply.
A number of our suppliers have indicated that even our confirmed orders may not be delivered or may be incomplete, and that the price will have to be re-negotiated. We will of course try to prevent this impacting you, but it does indicate how unstable the situation is at the moment.
What does this mean for you?
- We must reserve our right to change outstanding quotes and your current prices. As of today, these will be daily prices unless explicitly agreed otherwise with us in writing
- Price offers and quotations that have already been issued, will have to be re-negotiated with regard to price and delivery time
- In case of doubt, please consult with your sales person
- It cannot be ruled out that further price increases will be applied as the market evolves
The future: It is very difficult to make a reliable prediction of how this will evolve or for how long the impacts will be felt, especially as there are so many uncertainties and unpredictable external factors in the market. We will undertake to keep you informed so that you can take the best decisions for your business.
As you know, we at Vink UK Ltd are part of the strong international Plastics Family Group and in that respect, you can be assured that we exerting maximum pressure to ensure that product availability is as high as possible and that the price effects are minimized or spread as far as is possible. We have the deepest stocks and broadest supply base in the industry, so we are best placed to support you in this challenging time.
However in light of these unprecedented market conditions, we feel it is our duty to inform you of the problem so that you can take the right decisions for your business. As always, the team at Vink will be happy to advise and assist you in making the right decisions.
Thank you very much for your understanding.
With best regards,