PRICES of plastic resins, both local and imported, have increased substantially between 15% and 30% in late January this year compared with November 2002.
The increase was in line with the surge in the crude oil price, which had surpassed US$30 per barrel, the Malaysian Plastics Manufacturers Association (MPMA) said in a statement.
MPMA said that this prevailing trend was expected to continue into February/March 2003 due to the increasing threat of the Iraqi war and the oil-strike in Venezuela, which would not likely end by next month.
Because of this increase in the prices of plastic resins, there would be a spill-over effect, which leads to the increase in the cost of production, it said.
MPMA president Callum Chen said that the association had asked that retailers of plastic finished products exercise some understanding and consideration in their negotiations with the plastic products manufacturers so as not to have too big an impact on the end-users.
Currently MPMA has 900 members, which represent about 60% of plastics manufacturers in the country and accounts for 80% of the countrys total production of plastic products. Bernama