- Food inflation continues to rise, affecting demand- Global supply forces contract





In April, European PET spot and contract
prices fell as food inflation continued. With global supply short and
demand low, monthly contract and Spot prices also dropped. The high inflation led to lower prices and
demand in the key polymer markets. European production costs are still
higher than those of US and Middle Eastern countries. High
inflation and discretionary will mean that prices will remain suppressed. A producer
stated that the recession is "less severe but prolonged". The
producer added that there are signs of patterns of lower expenditure. The weather
has been bad and you can add that to the mix and you might see some brands try
to sell products as you move into May. "We
probably would have preferred to see increases in prices, but not much,"
said...