German production of plastic films and packaging fell by 1.8% to 4.2 million mt in 2012 due to the eurozone financial crisis and low domestic economic growth, industry association Industrievereinigung Kunststoffverpackungen said in a statement Tuesday.
The turnover for 2012 was Eur13.2 billion ($17.2 million), down 0.4% on 2011, as manufacturers were faced with fewer orders particularly in the second half of 2012 and increased competition from rest of Europe.
“Despite the slightly lower demand, packaging manufacturers had to face further increases in raw material prices. These could only be passed on to the market with a delay, if it was possible at all,” the statement said.
According to Platts data, on January 1, 2012, low density polyethylene contract price was assessed at Eur1,252.50/mt FD NWE, and ended the year at Eur1,482.50/mt FD NWE on December 31, 2012. LDPE is one of the primary raw material used in plastic packaging and films.