The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.
In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies
Taiwan’s Formosa Petrochemical Corporation has declared force majeure, while Formosa Plastics has announced production cuts on key petrochemical products.
Taiwanese consumers have been stockpiling plastic packaging products, prompting Costco to impose purchase limits on items.
Costco’s purchase limits cover items such as food storage bags and plastic wraps, effective until April 2.
The prolonged disruption of the Strait of Hormuz amid the war involving Iran has constrained shipments of crude oil and naphtha to Taiwan, creating uncertainty for the island’s plastics packaging supply chain.
In response to feedstock delivery delays caused by shipping disruptions in the Middle East, Taiwan’s Formosa Petrochemical Corporation has declared force majeure on select petrochemical supplies. These include ethylene and propylene, with the company announcing production cuts and suspending new orders.
Meanwhile, due to the disruptions, Taiwanese consumers have stockpiled plastic packaging products, driven by concerns over potential price hikes and shortages.
In an effort to manage demand, Costco Wholesale Taiwan has implemented purchase limits, which started on March 27.
Ten types of packaging sold at Costco Taiwan, including food storage bags, garbage bags, plastic wrap, and zipper bags, will be restricted to one set per membership card.
Food service packaging manufacturer Genpak plans to close its manufacturing facility in Cedar City, Utah, by May 23, the company announced this week. The closure will affect approximately 200 employees, Genpak said.
That plant produces a “large volume of polystyrene containers,” according to the company. It cited “rising legislative polystyrene bans in neighboring states” that prohibit the sale of single-use foam containers, table ware and cups as the reason for the shutdown. Nearby states with such bans include California, Colorado, Oregon and Washington.
PMMI, The Association for Packaging and Processing Technologies, announced the continued growth of its membership, adding 21 new companies this Fall, bringing active membership to 943. “The addition of 21 new members demonstrates confidence in PMMI’s ability to provide timely resources that drive the packaging and processing industry forward. We are committed to adding value to our members’ businesses so they can stay competitive and adjust to our constantly changing climate,” says Glen Long, senior vice president, PMMI. “Now more than ever, we are excited about our growth and look forward to continuing to support our membership.”
Underlying EBITDA from continuing operations in Q1 2023 was €351 million and broadly flat when compared to Q4 2022 after excluding the non-cash forestry fair value gain1. The quarter was characterised by lower average selling prices; softer demand, driven in part by destocking; and lower input costs from the highs seen in H2 2022. While wood prices remained high in Q1 2023, they have now started to reduce. Corrugated Packaging saw softer demand, driven in part by destocking, and lower prices compared to Q4 2022. Flexible Packaging delivered a stable performance compared to Q4 2022, with weaker industry demand and modestly lower prices being offset by falling input costs. Uncoated Fine Paper demand in Europe was lower compared to Q4 2022, with prices declining towards the end of the quarter. In Southern Africa demand and pricing were stable.
