Have you heard energy crisis or environmental pollution? The following news is about the plastic rise due to the cost increase.
Some of the major North American manufacturer of PE films seek product prices, the reason has nothing to do with the resin costs. This is the third time this year.
AEP Industries Inc., Sigma Plastic Group and Berry Plastic Corp. The three companies were recently sent a letter to customers, saying the price began to take effect since Dec. 1st. The three companies. AEP and Sigma Plastics are located in New Jersy, Hackensack and Lyndhurst. The two companies plan to raise price by 4%. Berry Plastics is located in the city of Evansvile, Indiana, planned price is increased of 3-5%.
AEP Chairman and CEO Brendan Barba and mentioned in the letter, shipping, energy, health services and other rising costs associated with its non-resin bring “unprecedented pressure.”
AEP has devoted to improve the production efficiency to offset these cost. But it is not always can achieve the offset effects as the cost is rising rapidly.
This year in May and September, the manufacturer also plans to launch similar price increases, the results are different. PE film manufacturers need to face a steady rise in PE resin prices, since the end of 2012 its North American PE resin prices have risen six times, the cumulative increase of 23%, which never fell over. Historical data from previous years, more typical case is part of the gains tend to be offset by the decline, but only rise of unconventional phenomena is beyond the end of 2012.
According to a recent Plastics News ranking, AEP, Sigma and Berry in the top ten film and sheet manufacturers in North America each have one seat.
So people should pay attention to the plastic recycling and save resource to release the energy crisis.