Whilst the details of the Brexit divorce settlement and future trading relations are likely to become clearer over the coming weeks, it is important to consider a range of scenarios including ‘no deal’.

At Plastribution we have spent some time looking at the implications to our own business and the likely effects for our customers in the case of a HARD BREXIT. We have highlighted here some of the major issues as we see them:

Currency Devaluation

Economists have predicted a 10% devaluation of the pound in the event of a Hard Brexit, which could lead to increases of over £100/T on materials like PP and PE, and more for higher value engineering polymers. Devaluation of the pound against the Euro is especially critical as c.80% of polymer imports come into the UK from the Eurozone.

Tariffs

In the event of a ‘no deal’ with the UK’s EU trading partners, the UK could revert to WTO (World Trade Organisation) tariffs of 6.5% on all EU imports, this in turn will likely impact UK polymer pricing. Tariffs could also mean that the UK is seen as a less attractive export region and could tighten supply.

Logistics

The biggest concern is regarding delays at port due to the implementation of hard borders. Lead times could extend significantly as a result. UK warehousing capacity is already under pressure and may be further stretched as Brexit uncertainty encourages businesses to secure their own supply chain by increasing stock holding in the UK.

Below are some of the ways Plastribution can help support your business, by:

  • Securing specific stock for customers at a fixed price
  • Increasing our general stock levels over critical periods
  • Working with suppliers to ensure supply chains are robust and secure
  • Working with you to plan flexible and intelligent deliveries
  • Plastribution can also help by providing market intelligence through our monthly Price know-how report, accessed through our know-how hub at www. plastribution.co.uk/know-how-hub.

Additionally, as your business partner, we are here to provide you with the very best in terms of supply chain management, product support and service innovation.

Visit Supply Chain know-how to find out more or call us on 01530 560560

Meet Plastribution Group's elastomers business

Elastribution is Plastribution Group’s distribution business for speciality elastomers and related products.

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