Manufacturers in the UK could soon feel the impact of raw material rises, one industry body has warned.
The Packaging and Films Association (PAFA) has said that firms in the UK could find that they are faced with rising prices for PET feedstocks.
It has highlighted how the price of the PET raw material PTA recently shot up by 26 per cent in the course of one week.
Pressure is being exerted by Asian markets, where demand for polyester in the use of consumer goods and clothing continues to rise.
In addition to this, there are supply and demand imbalances, following the recent failures of crops.
This could mean that new capacity does not come about for up to two years, which could make prices unaffordable for producers.
Commenting on the situation, PAFA's chief executive Barry Turner said: "The market for thin film polyester has already seen a more than doubling in price this year influenced by strong demand for film applications in other sectors and although PET feedstock prices have risen during the year we are now seeing signs of acceleration in feedstock prices as well."
He added that the price hikes could impact on progress made in recycling. However, it could be good news for those working in the recycling industry.
Typical Guttridge equipment used in the recycling industry includes; conveyors – screw conveyors – chain conveyors – belt conveyors
