What are the implications for UK plastic processors as the GBP continues to weaken with ‘BREXIT SHOCK #2,’ at the same time as oil firms and some feedstocks increase in price?
Any hopes for an escape from inflationary pressures look remote, especially for polyolefin processors. The possibility of a recovery in the value of the GBP has been annihilated by the announcement that the notice under ‘Article 50’ will be served in March 2017. There is the possibility that we are going to have a ‘hard BREXIT’. Whilst headlines focussed upon a 31 year low for GBP against the USD, the GPB fared little better against the Euro, even in spite of the timely release of positive expectations of growth in the UK economy this year. This BREXIT #2 FOREX Shock may be the sign of things to come when both the March 2017 date is confirmed and then the March 2019 exit occurs.
The recent OPEC meeting and subsequent agreement to limit oil production really only went as far as to push oil back above the magical $50 per barrel threshold and return the price to the level where it was already earlier this summer.
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The concept of a user friendly market report came from feedback about an article published in PRW (Plastics & Rubber Weekly) about the 2011 market outlook to which Plastribution made a significant contribution.