LONDON (Alliance News) - British Polythene Industries PLC Tuesday said trading volumes in the first four months of 2015 have been higher than a year ago and said polythene polymer prices have rebounded.
The polythene product manufacturer said volumes are ahead of last year due to increased sales of silage stretchwrap reflecting new capacity, and said that although it indicated polythene polymer prices had dropped in the first quarter, prices rebounded in March and April.
Polythene is one of the most common worldwide plastics that is used in a variety of products such as packaging.
"This position (of polythene prices) changed in March and April when a reduction in imports to the European Commission from the Middle East coincided with a number of declarations of force majeure by Western European polymer producers. The price has rebounded to high levels, with shortages in many grades," said the company.
"We currently envisage this volatility continuing until the holiday season starts in Europe, when the subsequent reduced demand should allow supplies to get back in balance," it added.
British Polythene said its margins are likely to benefit in the short-term.
"Nevertheless, with the successes that we are achieving with new products in both the UK and European markets, and the recovery in the performance of our North American business, we remain confident in the outcome for 2015," said the company.
British Polythene shares were trading up 3.7% at 722.0 pence per share Tuesday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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