Rising crude prices have propelled northwards, prices of naphtha and other petrochemicals. To counter these rising polymer prices, downstream processors are mulling price hikes. Packaging material manufacturers, no longer able to absorb rising costs, have hiked prices by almost double digits. Rising price of polymers have been coupled with increasing electricity and transportation costs. European food manufacturers are confronted by added cost burdens due to the recent hikes in packaging materials.

Nampak has hiked prices by double digit. Nampak provides packaging for a range of food products including dairy, juice, sauces, pickles, dressings, cooking oils and dried fried foods. Alcan Packaging, a supplier of flexible packaging for the food and beverage market, up to 15% price increase on resin-based packaging products in Europe, with effect from 1 August, 2008.

Dipping in oil prices, which have fallen nearly 20% in less than a month, have raised hope that the crisis in the commodities markets may have eased.