Excelothene - Thursday, April 28, 2016

The price of polythene is renowned for being hugely volatile and has experienced many highs and lows over the past few years.

Polythene that is manufactured in the UK is produced using the finite resource that is crude oil, of which is currently at a huge low of £26 a barrel. For this reason, we should expect to be seeing a big drop in prices – but that’s not the case.

Despite the fall in price of crude oil, the polythene industry is still struggling to see any real benefit. Where we should be seeing a fall in cost, we’re seeing a steady price increase where supply is falling.

For a multitude of reasons, chemical companies have been closing their doors - cutting both jobs and supply. With more and more factories facing closure the polythene industry’s supply is not meeting the current demands. This is what’s causing the price increase and making the decreased cost of crude oil a moot point.

packaging supplies in empty warehouse

Why are polythene factories closing?

A lack of investment is arguably the most probable cause of the closures. With the rising cost of polythene and the overwhelming environmental concerns, investors aren’t rushing to put money into the polythene industry.

The new legislation on plastics bags is just another factor that has and will continue to put pressure on the polythene industry. Since the 5p charge was introduced last year, the polythene industry has already seen plastic bag companies go into administration. Tesco’s reported an 80% decrease in plastic bag usage since the charge began; assuming this continues across supermarkets, there will undoubtedly be an affect on the factories.

At Excelothene, we believe in delivering affordable polythene packaging supplies to all of our customers. Not only do we believe in ensuring inexpensive costs but we also strongly believe in top quality products that are also environmentally friendly.

Please contact us today to see how our packaging supplies can help bring your business savings and reduce your impact on the environment.

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