The pressure on supply and consequent impact on prices has been both a function of exchange rates and output/availability
within the EU.
The pressure on supply and consequent impact on prices has been both a function of exchange rates and output/availability within the EU. As the graph to the right depicts, the depreciation of the Euro against the USD has been significant.
Not only has this made the EU less attractive to exporters in the rest of the world. It has also made it lucrative for EU producers to export to USD-based markets such as the Americas.
Even a recent strengthening in the Euro has done little to offset the over 25% depreciation in the last 12 months.
Of course, exchange rates are only part of the story. The other effect of shortage is to make a correction through price increases to make Europe an attractive export destination for producers based outside.
Given that the market for feedstocks is multi-regional, the increases in polymer prices has necessarily far exceeded those of feedstocks in order to attract imports into the EU.
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