Prices of plastic resins up 15 to 30%

Prices of plastic resins up 15 to 30%

The prices of plastic resins, both local and imported, had increased substantially between 15 and 30 percent over the last six months, The Malaysian Plastics Manufacturers Association (MPMA) said.

Prices of resins started to increase gradually since July 2003 and became more drastic in November 2003 and the increase in prices of resins appears to be continuing, MPMA said in a statement here today. The increase was mainly attributed to the strong surge in crude oil and natural gas prices that has led to higher naphtha prices, said MPMA. MPMA said the tight supply of resins due to strong demand from China has also aggravated the situation.

The prevailing trends are expected to continue in 2004 due to continued strong demand from China and low inventory level of most resin suppliers, it said. "Because of the increase in the prices of plastic resins, there would be a spill over effect, which would lead to the increase in the cost of production."

However, MPMA's chairman, Callum Chan, has called on retailers of plastic finished products to exercise some understanding and consideration in their negotiations with plastic products manufacturers so as not to have a big impact on the end-users.