Oil and polymer prices

Dear Customer,

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As you will be aware following the huge spike that we saw in oil and polymer prices following the war in Ukraine, we have more recently been in an environment of falling oil and polymer prices.

However, this situation has reversed during August 2023, and we are now seeing quite large increases in both oil and the downstream derivative naphtha. We strongly believe that this will put pressure on polymer producers to push through these increased costs, but we also believe that, in conjunction with the polymer plants currently down for maintenance or Force Majeure, this will create a much tighter supply market for polymer.

We have already seen this starting in August with supply problems and prices going up but we believe that it could get worse as we move into Winter.

With this in mind we wanted to take this opportunity to firstly make you aware of the polymer likely price increases, but also to ask that you get your forecasts and orders in early, so that we can start the necessary actions to ensure we secure everything that is required and continue to offer the best service and continuity of supply.

If any questions please don’t hesitate to call your Berry contact.

Kind Regards
Søren Rohleder
CEO, Berry Superfos