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Managing Editor  | May 2017

Report indicates pressure being put on EU plastics and additive market


A recent report from the Polymers for Europe Alliance, which was established by the European Plastics Converters Association (EuPC) in 2015, indicates that the limited production of titanium dioxide, an additive used for white masterbatch and as a UV stabilizer in rigid PVC outdoor products, has driven prices to an uncompetitive level.

 

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The European market for titanium dioxide is at an unsustainable level according to a report.
(Wikimedia Commons)

 

The Polymers for Europe Alliance explained, “No extra volumes seem to be made available for Europe by the producers from outside the EU to support the growth in the plastics industry markets, especially for some PVC building applications and polymer masterbatches.”

 

Ron Marsh, chairman of the alliance, added, “We call upon all the TiO2 producers to help our plastics converting industry to create a global level playing field to secure the development of our business in Europe.”

 

The alliance was initially created in 2015 to maintain good communications between polymer and additive suppliers and customers to avoid the “catastrophic” issues that the market faced in the first quarter of 2015.

 

According to an article in Plastic News, 2015 saw a “severe shortage” in polymers across Europe, including standard commodity polymers like PE, PP, and PVC.

 

The statement from the Polymers for Europe Alliance continued, “At the same time some polymer supplies are getting very tight and plastics converters have difficulties to pass on the large price increases to their customers. It seems that the margin of the converters sandwiched between polymer suppliers and users of plastics is being squeezed in growing markets, and this is damaging business prospects in the first quarter of 2017.”

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