Trade association AVK-TV says polymer price rises are difficult to pass on

Germany’s reinforced plastics association AVK-TV has reported difficulties among GRP parts producers in passing on material price increases to their end customers.

Prices of raw materials used to make unsaturated polyester resin have increased by 40% since the beginning of the year, AVK-TV said, and there is no end in sight in view of benzene production capacity being fully stretched.

For thermosetting GRP products (bulk and sheet moulding compound), producers are under pressure to pass on price rises of around 15-20% to their customers, resulting in moulded part price increases of 6-8%.

But thermoplastic semi-finished GMT and LFT products are also affected by “enormous increases” in the price of polypropylene. Companies in the sector are next month planning to pass on semi-finished product price increases of 13-15%.

AVK-TV managing director Uwe Bьltjer said it was extremely difficult to pass on raw material price increases to customers, who are mainly automotive companies. He was concerned about the effects on BMC/SMC producers and moulded parts producers; these are predominantly medium-sized companies which are squeezed between larger raw material producers and end customers.