The Union of Plastics Processors is preparing an appeal to the Russian government with a request to take measures to curb the rise in prices for basic raw materials, the union said.
The union notes “an unprecedented rise in prices” and claims that the cost of polymer raw materials on the Russian market is breaking records every month. For some items, compared to the beginning of 2021, the growth milestone of 30% has been passed. The Union cites data from the industry portal Market Report, according to which, according to the results of January-February 2021, the price of polypropylene in Russia increased by 17% on average. Certain types of raw materials have added in value by more than 25-30%. Prices for polyamide-6 (PA-6), having overcome the mark of 100 thousand rubles / ton in January, continued to grow, as a result, by March, the cost of primary PA6 increased by 26% compared to December 2020.
The Union emphasizes that in the current situation, processors of polypropylene and polyamide-6 are forced to raise prices for products for consumers – manufacturers of plastic products. The organization cites information from the trading house “Polyplastic”, according to which the company increased the cost of its products based on polypropylene by 11%, and on the basis of polyamide-6 – by 9%. The company did not rule out that they will have to raise prices again.
According to the union, manufacturers of plastic products notice that, in general, prices for materials on the market have been growing since the summer and not all suppliers are trying to restrain this growth.
“A sharp increase in prices is usually impossible under the terms of contracts with consumers. However, the raw materials for our production by the end of 2020 showed a dynamics of about + 30%, and since the beginning of 2021, their cost has increased by another 20-25%. Accordingly, manufacturers of plastic products are forced to raise our prices so as not to work at a loss. Even more the situation for us, as processors engaged in casting, is complicated by the fact that many injection grades from Russian suppliers have disappeared altogether – they do not exist, “the commercial director of Fanbox “Andrey Golikov.
The organization warns that an increase in prices for basic raw materials will inevitably lead to an increase in the cost of the final product: for example, in February, food industry enterprises announced that, due to an increase in the cost of packaging by 10-15%, products in stores may still increase in price.
Mikhail Katsevman, Chairman of the Board of the Union of Plastics Processors, notes that the constant rise in the cost of basic raw materials exerts serious pressure on the entire industry. “It was decided to appeal to the government of the Russian Federation to convey the seriousness of the situation and propose to take measures to regulate prices for basic raw materials. We have already raised the issue of creating a working group for the Ministry of Industry and Trade, we hope that we will soon receive a positive response and begin to act “, – his words are quoted in the message of the union.