Injection-moulder Talisman Plastics is reaping the benefit from its new MacroPower-based injection moulding production cell, designed and supplied from Wittmann (WIBA UK).

Doing more with less is also a given for Talisman’s marketing strategy: Since the company name change five years ago a doubling of turnover has resulted. The key to this has been a relentless 80/20 Pareto-based analysis of customers and markets than actually provide Talisman with value and volume. Over the past five years the consequence has been a fivefold reduction in unprofitable business. Today’s Talisman is now proactively focused on value-giving sectors such as automotive, fluid transfer and electricals as well nurturing a thriving proprietary product range in moulded food packaging.

High Density Polyethylene (HDPE) Market Analysis: Plant Capacity, Production, Process, Technology, Operating Efficiency, Demand & Supply, End-Use, Grade, Foreign Trade, Sales Channel, Regional Demand, Company Share, Manufacturing Process, 2015-2035

Left to right – Spencer Whale, Talisman sales director, Adrian Walter, WIBA UK area sales manager, Mark Fellowes, Talisman operations director

The global High-density Polyethylene (HDPE) market experienced a variety of trends during the previous week. While HDPE prices in Europe and Asia surged due to increasing freight rates, prices in the US remained stable. These fluctuations were primarily driven by subdued demand and limited supplies worldwide. Further, production costs were influenced by fluctuations in feedstock Ethylene prices and a decrease in Crude oil prices. Moreover, disruptions in major supply routes caused by geopolitical tensions exacerbated market pressures. Consequently, Injection FD Hamburg (Germany) prices for European HDPE rose by 1%, Chinese HDPE Injection Molding EXW Jiangsu (China) prices saw a minor increase of 0.4%, and USA HDPE prices remained steady for the week ending on May 24, 2024. In Europe, the HDPE market experienced an upward trend driven by increasing freight rates, and low inventory levels in the regional market contributed to this rise. Further, higher costs of feedstock Ethylene supported the pricing of HDPE. However, demand from key sectors like construction, automotive, and packaging remained subdued in the domestic market. The surge in ocean freight demand from Asia, possibly signaling the start of a restocking cycle in Europe, along with North American importers accelerating their peak season demand due to concerns over labor issues or disruptions in the Red Sea later in the year, further strained the container market. This strain was worsened by the redirection of shipments from the Red Sea, leading to increased import costs of raw materials in Europe. Throughout this period, HDPE prices in the US remained stable, reflecting balanced supply and demand dynamics. Polyethylene trading significantly improved compared to the previous week, with prices for the most commonly traded grades remaining steady as business operations returned to normal. Despite rising freight rates from Asia to the Americas and shipping delays, export demand remained robust. However, international buyers continued to resist price increases, making incremental export sales challenging despite steady prices and limited prompt availability. Moreover, although feedstock Ethylene prices were increasing due to rising upstream Naphtha costs, HDPE prices remained unchanged. During this week, the Asian HDPE market maintained stability with a slight price increase, particularly noticeable in imported PE film grades which experienced consecutive rises over two weeks. This was fueled by a shortage of Middle Eastern origins and escalating freight rates. Despite a cautious increase in demand and the film industry entering its off-season marked by restocking and terminal inquiries, order transactions remained subdued, exacerbated by weak downstream demand. Furthermore, the recent decrease in Crude oil prices has impacted production costs, partly due to the high-interest rate environment in the United States, which has suppressed demand, alongside bearish US inventory data and decreasing geopolitical risk premiums. These factors highlight the balance in the HDPE market, where supply constraints and fluctuating external factors shaped pricing dynamics amidst subdued demand.

Adrian Walters, WIBA UK sales engineer said: "Helping create the Talisman MacroPower manufacturing cell has been a valuable and rewarding experience for WIBA UK. Hopefully the benefits will make this the first in many such joint projects as Talisman’s successful strategy bears fruit over the coming three years."

In Europe, the HDPE market experienced an upward trend driven by increasing freight rates, and low inventory levels in the regional market contributed to this rise. Further, higher costs of feedstock Ethylene supported the pricing of HDPE. However, demand from key sectors like construction, automotive, and packaging remained subdued in the domestic market. The surge in ocean freight demand from Asia, possibly signaling the start of a restocking cycle in Europe, along with North American importers accelerating their peak season demand due to concerns over labor issues or disruptions in the Red Sea later in the year, further strained the container market. This strain was worsened by the redirection of shipments from the Red Sea, leading to increased import costs of raw materials in Europe.

"One phone call: That’s all I ever need or want to make if I want to explore all the possibilities in this system. I will typically call Adrian and ask - “Can the cell do this?” – to which he will typically reply “Yes” – or will research the issues and get back to me with options. And this relationship serves to further increase our creativity, efficiency and sales."

"In common with our supplier partner WIBA UK we are also building growth through a one-stop- shop that includes products, services and strategy – not only for know-how, cost and convenience – but also for the new and emerging circular economy," mentioned Talisman sales director, Spencer Whale.

Mark Fellowes, Talisman operations director, said that "prior to purchase we did our due diligence and comparison - routine for all our investments - and Adrian Walters and the WIBA UK team came through with flying colours."

Talisman Plastics – previously known as LGG Charlesworth until five years ago – celebrated its one-hundred-year manufacturing pedigree last year. The company’s busy Malvern factory contains many production cells, with only limited space for the new machine.

Throughout this period, HDPE prices in the US remained stable, reflecting balanced supply and demand dynamics. Polyethylene trading significantly improved compared to the previous week, with prices for the most commonly traded grades remaining steady as business operations returned to normal. Despite rising freight rates from Asia to the Americas and shipping delays, export demand remained robust. However, international buyers continued to resist price increases, making incremental export sales challenging despite steady prices and limited prompt availability. Moreover, although feedstock Ethylene prices were increasing due to rising upstream Naphtha costs, HDPE prices remained unchanged.

One constant factor throughout the Talisman procurement decision was WIBA UK’s much heralded ‘one stop shop’ for injection moulders, which not only supplied the 450 tonne MacroPower machine but helped design and fit everything else involved; including 4.0 connectivity, B8 Unilog control, Robotics and Automation, Conveying, Dosing and Guard Control, Materials Drying and Dispensing and additional lighting – bringing the entire package in within the bounds of all security and health and safety requirements.

"These are the actions that our customers want to see and which help us win new business. At the very least we need suppliers who can match these achievements and ambitions. All Wittmann equipment more than ticks the energy-saving box."

"In this particular instance, size happened to be everything," noted Fellowes. Try as they might, competitors could not match the compact footprint design of the Wittmann MacroPower machine; some two metres shorter than the nearest competitor.

During this week, the Asian HDPE market maintained stability with a slight price increase, particularly noticeable in imported PE film grades which experienced consecutive rises over two weeks. This was fueled by a shortage of Middle Eastern origins and escalating freight rates. Despite a cautious increase in demand and the film industry entering its off-season marked by restocking and terminal inquiries, order transactions remained subdued, exacerbated by weak downstream demand. Furthermore, the recent decrease in Crude oil prices has impacted production costs, partly due to the high-interest rate environment in the United States, which has suppressed demand, alongside bearish US inventory data and decreasing geopolitical risk premiums. These factors highlight the balance in the HDPE market, where supply constraints and fluctuating external factors shaped pricing dynamics amidst subdued demand.

The global High-density Polyethylene (HDPE) market experienced a variety of trends during the previous week. While HDPE prices in Europe and Asia surged due to increasing freight rates, prices in the US remained stable. These fluctuations were primarily driven by subdued demand and limited supplies worldwide. Further, production costs were influenced by fluctuations in feedstock Ethylene prices and a decrease in Crude oil prices. Moreover, disruptions in major supply routes caused by geopolitical tensions exacerbated market pressures. Consequently, Injection FD Hamburg (Germany) prices for European HDPE rose by 1%, Chinese HDPE Injection Molding EXW Jiangsu (China) prices saw a minor increase of 0.4%, and USA HDPE prices remained steady for the week ending on May 24, 2024.

For Fellowes the advantage in single source supply includes the peace-of-mind and equipment synergy provided by one manufacturer. But more importantly, the move opens up opportunities in aftersales service and partnership.

"Last year saw us gain the Environmental Standard, ISO 14001, we also invested £80k in Solar Power, and we also shaved 9% off our annual energy bill," added Fellowes.