Since the beginning of the year we have to accept massive price increases for all types of plastic products for agricultural applications – the commodity price increase is +75% (compared from December 2020 to March 2021). This applies to all silo- and grain bags, silage films, stretch films, round bale nets and baler twines made from primary raw materials. Strongly increased freight costs also contribute to the general increase in prices.

shortage of raw materials

The reasons for these price increases are sharply increased commodity prices (for granulates) with accompanying commodity shortages. Covid-19 has significantly reduced global consumption of kerosene, diesel and petrol (fuels of all kinds), with the result that all major fuel manufacturers have reduced production. These fuels are produced from crude oil. One by-product at fuel production is “naphtha”, which is the basic material for various polyethylene products. Naphta is currently not available in sufficient quantities. As a result, there will be a shortage of supplies in almost all areas this spring

Prices will continue to rise for the months of April, May and June. A rough estimate of about +30% at the current level seems realistic.

outlook

A normalisation of availability should occur in the second half of the year, as should a decrease in film prices. However, it is not yet possible to estimate exactly when and to what extent the price fall will occur. We keep you informed!