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Thimmiah Napanda, Managing Director & CEO, Alternicq, said the company and its customers focused on securing supplies amid uncertainty in raw material availability, leading to inventory build-up at elevated prices. As crude prices ease, the benefits are expected to flow gradually through the packaging value chain. Existing inventories will delay immediate cost relief, and companies are likely to prioritise rebuilding margins before passing on benefits to consumers. Nevertheless, improved geopolitical stability and softer crude prices are expected to support a healthier demand environment for the packaging industry.

US-Iran deal eases pressure on consumer firms, but no relief for shoppers yet
 

Thimmiah Napanda, Managing Director & CEO, Alternicq, noted that the company and its customers prioritised supply security during the recent period of uncertainty, leading to inventory build-up at elevated raw material prices. As crude prices soften, the benefits are expected to flow gradually through the value chain. Existing inventories and contractual commitments are likely to delay immediate cost reductions. Companies are expected to first restore margins before passing on benefits to the market. Nevertheless, improved crude price stability is expected to support a healthier packaging ecosystem and demand outlook.

Thimmiah Napanda, Managing Director & CEO, Alternicq, noted that the company and its customers prioritised supply security during the recent period of uncertainty, leading to inventory build-up at elevated raw material prices. As crude prices soften, the benefits are expected to flow gradually through the value chain. Existing inventories and contractual commitments are likely to delay immediate cost reductions. Companies are expected to first restore margins before passing on benefits to the market. Nevertheless, improved crude price stability is expected to support a healthier packaging ecosystem and demand outlook.

US-Iran deal eases pressure on consumer firms, but no relief for shoppers yet

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