Pandemic shutdowns, combined with the February cold snap that shut down many chemical plants in the Southern U.S., has led to a shortage of a key raw ingredient in plastic: resin.
This could lead to farmers seeing higher prices and possible shortages of plastic agricultural products. Beyond resin, a shortage of fiber also continues to plague the plastic composites industry.
This situation has led the plastic-converting industry to see a severe shortage of raw materials. An April report from the European Plastic Converters (EUPC) showed 90 percent of European plastic converters reported a shortage of raw materials.
“This situation is threatening the economic survival of small- to medium-sized businesses but also endangering the production of countless products, ranging from applications in the building and automotive industry to essential goods for the food packaging and pharmaceutical supply chains,” the EUPC said.
If the situation continues, the industry could see the supply of essential plastic goods not be guaranteed.