Blogs The need for plastic packaging surged tremendously

For some months now, raw material prices have been surging uncontrollably. Expansionist global economic tactics, which poison the market by infusing massive amounts of loan liquidity, appear unable to maintain pace with the actual economy and the earth's resources. The scarcity of raw materials is causing certain Austrian wood product manufacturers to lay off employees, not because of a lack of orders or a glut of orders. Within two months, wood output grew by + 120 percent . Steel, iron, and aluminum are just a few of the metals and derivatives that are being affected by this issue. An enormous blow to agriculture has been dealt. Think about the tripling of agricultural fuel and the 20 percent rise in the price of farm machines. Can not help but effect the price growth of fruit and vegetable sales prices

The rise in main inexpensive gift box packaging (traditional cardboard, plastic, or wooden platforms) and secondary packaging (in certain instances, uniformly weighted packing inside the primary packaging) would translate into tens of thousands of euros in higher expenses for regular Italian packers. Several Italian fruit and vegetable businesses have issued warnings. They've witnessed a lot of price hikes recently. Due to the shortage of raw resources, the likelihood of supply interruption is not small. This problem is worldwide and impacts all economic sectors to some degree. If the packing issue concerns fruit and vegetable plants, producers are also interested in all the equipment they employ, from iron wire to crop mulch, from diesel to agricultural gear. Unless the already modest marginal position of primary sector firms is further decreased, this growing tendency would undoubtedly influence the sales prices of agricultural goods and fruit and vegetable items. Is the distribution system capable of handling it? What is the influence on inflation?

One of the top enterprises in the corrugated board packaging sector, ghelfi ondulati spa, said that today's raw material condition is the product of the post-pandemic economy. 'Kraft paper has seen a 40% increase since October. As a result of this expansion, half-chemical white paper and, more concerningly, basic pulp paper have gained popularity. To be honest, a raw material scarcity in July is not completely out of the question. I do not believe this is a speculative bubble since there are too many businesses involved (Plastics, wood, chemicals, transportation) (Plastics, wood, chemicals, transportation). But the increased need. E-commerce is the fastest-growing segment of both marketplaces. And from the fact that they can’t move, consumers spend more on things by boosting overall demand. It's risky to make forecasts during a perfect storm. We must rely on visual cues to guide us. With the fall in global demand beginning in October, we can return to a normal condition where medium-term predictions may be made."

“2020 – Massimiliano persico, marketing manager of carton pack spa, highlighted that” worldwide packaging specialist “is based in rutigliano (BA) ——

Due to the blockage, the need for plastic packaging surged tremendously, resulting in evident contrasts between the two. The shift in shopping habits and the expansion of online commerce demand additional polymers to make packaging. After tripling in the East, transportation costs for raw materials have become almost prohibitive since the spring of 2020. Taking pet as an example, the demand in Europe is roughly 4 million tons, but the production capability inside the EU is just 2.5 million tons. Because of this, I will not use the term "speculation in raw materials," but rather refer to the genuine disparity between supply and demand. A further hindrance to recycled plastics demand is the deferral of the National Plastic Tax, which is not anticipated to apply to recovered plastics. Recycled plastics will likely climb in price from now until 2022 as a result of the government's new green economy policy and will eventually take the place of the original polymers, which are still scarce, particularly PP.

Assoimballaggi voiced his opinions on wooden cases: “As early as the end of 2020, the costs of certain semi-finished wood items have grown by more than 20 percent . Prices have risen steadily since last year and are projected to continue rising. At the next price reading, the rise may reach a high of more than 50 percent . In addition to wood, other materials utilized in the manufacture of boxes, such as metals, have seen a rise in price. In addition, our company's billing expenses have climbed by about 8% as a result of the rise in energy expenditures since January 2021. In the past, there has been an increase in the price of raw materials. To avoid passing on greater prices to clients, the wood packaging industry has absorbed some of the recent increases. However, the current rate of increase is both too high and too fast. The difficulty resides not only in the pricing, but also in the feasibility of manufacturing businesses procuring raw materials to match the expanding demand for wood packaging “.