Australian packaging converters are continuing to adapt to ongoing volatility in global polymer markets, with a focus on material optimisation and supply resilience.
Melbourne-based plastic packaging converter Caps & Closures says it is working closely with both suppliers and customers to manage the impact of fluctuating resin availability and pricing.
In a letter to customers, managing director Brendon Holmes outlined a series of operational measures aimed at reducing exposure to virgin material while maintaining product performance.
These include the use of the company's Oysterlean biorenewable calcium carbonate filler systems in selected applications, optimisation of part design to reduce material usage, and a shift from coloured to natural caps where suitable to minimise changeover waste and improve manufacturing efficiency.
Caps & Closures is also increasing the incorporation of recycled content where specifications allow, in a move designed to reduce reliance on virgin resin and support greater material resilience.
Holmes said these steps are intended to deliver more predictable production outcomes while maintaining quality, as disruption continues across global polymer supply chains.
“While market conditions remain uncertain, our goal is to continue to provide confidence in supply, practical support, and options to improve resilience and control costs,” Holmes told PKN.
Another converter who has been vocal on the subject of resin supply disruption is Aleks Lajovic, managing director of Sydney-based tube manufacturer Impact International, who told PKN the "supply chain squeeze" remains a real problem with vessel movements subdued through the Strait of Hormuz, which is now subject to blockades by both Iranian and American forces
Lajovic said, “We are now getting to the point where orders that were placed before the war in the middle east commenced have delivered. We know what pricing looks like for new orders, we do not yet know how reliable the deliveries will be. The next four weeks will be crucial for many companies that use plastic resin."
Rigid plastics converter Pact Group has similarly flagged the “unprecedented disruption” to international resin supply, leading the company to seek alternative sources of supply where possible, as it works to maintain continuity for its customers.
The disruption is not limited to resin. Pact said broader raw material inputs are also being affected, alongside ongoing instability in international shipping and container networks. Both international and domestic supply chain costs are rising sharply as a result.
Pact has moved to pass through increased costs immediately, including higher resin prices, freight charges and other input costs. The company warned that conditions are expected to tighten further, with resin supply security likely to deteriorate and prices continuing to rise as the situation remains volatile.
While conditions remain fluid, the focus on material optimisation and alternative inputs is emerging as a key strategy for converters to maintain supply continuity and control costs, as ongoing disruption in key petrochemical markets continues to flow through to the Australian packaging sector.
