The start of the war in Iran has generated a storm in the global economy that directly affects oil and its derivatives, as well as national and international transport. Since then, the companies that manufacture plastic products They have seen the price of their raw materials rise by around 30%.
These are data from a survey that has been conducted ANAIP among its associates, Plastic processing companies that buy granules in any of their formats - pellets, flakes or powder - to manufacture essential products for all types of sectors: containers and packaging, construction, pipes and fittings, plastics for agriculture, for the automotive industry, for the healthcare sector, etc.
51,7% of respondents report experiencing increases in raw material costs of more than 30%, and almost 14% have seen increases of 50% or more. Shipping costs have also risen, with 41% of companies reporting increases exceeding 20%, in addition to the increased cost of energy, both electricity and fuel.
Added to the increased costs is growing uncertainty about the duration of the conflict. In fact, what worries companies most is that the war will drag on and cause disruptions in the supply chain. Europe is not self-sufficient in many plastic raw materials and depends heavily on supplies from the Middle East or Asia, which increases the sector's vulnerability to disruptions in international markets. "Any restrictions on international trade or exports from these regions will create additional supply chain tensions, which may force some companies to temporarily halt production lines," the report states. Isabel Goyena, Director General of ANAIP.
60% of the companies participating in the survey say they are already experiencing delays in the supply of raw materials, of which 21% indicate that the delays are serious.
Many companies in the sector have enough stock to withstand these conditions for a while, but the duration of the conflict is crucial. 38% of companies will not be able to maintain operations for more than a month without having to shut down due to a lack of raw materials, and this percentage rises to 72% for periods exceeding two months.
Request for support
Given this situation, ANAIP has contacted the Ministries of Economy, Industry and Labor to ask them to take the sector into account when designing possible support measures for the industrial fabric in this context.
ANAIP believes it is essential to make progress in reducing energy costs, especially by reviewing taxes applied to electricity and energy consumption, in order to alleviate the pressure on industrial companies. Strengthening support for logistics and transport is also key to guaranteeing product supply.
In the fiscal and regulatory sphere, they believe it is advisable to review certain burdens, such as specific taxes, including possible modifications to the tax on non-reusable plastic packaging. They also consider it necessary to enable extraordinary labor flexibility mechanisms, such as specific temporary layoff schemes (ERTEs) for the sectors most affected by supply chain disruptions.
Finally, they believe it is essential to closely monitor the supply of strategic raw materials for the processing industry. “From within the sector, we continue to emphasize the need to strengthen strategic autonomy and local manufacturing capacity in Europe as a guarantee of security in the supply of essential plastic products for the economy and society,” concludes Isabel Goyena.
