Materials market monitoring 'threatens packaging film pricing'.
Now PAFA says that one of the indices--it doesn't say which--has "inexplicably diverged to the degree that it no longer reflects reality in the market place." According to chief executive Barry Turner: "After an extremely difficult period of increasing prices paid by converters for their raw material, they face a further challenge from an unexplained divergence in the UK polymer price indices which are crucial to maintaining a real-time, realistic view of the cost of polymers and therefore end prices. This divergence is so significant that it may not only seriously affect market price stability, it could even result in price indices being abandoned as a reliable polymer pricing mechanism".
He added that, following a sustained period where film margins have been squeezed, "To be faced with an index that is signalling faster downward movements than are actually occurring is a very serious problem. If sustained, it could result in converters moving away from pegging their prices to an index that has inexplicably moved out of line, as it would impact on the viability of the UK plastic films and film products industry."
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|Title Annotation:||packaging materials|
|Comment:||Materials market monitoring 'threatens packaging film pricing'.(packaging materials)|
|Publication:||British Plastics & Rubber|
|Date:||Oct 1, 2010|
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