UK imports of colourless glass fell 31.6% year-on-year (y-o-y) in November 2023 (latest available data), according to data from HM Revenue and Customs and Mintec calculations, while exports decreased by 20.9% over the same period. As can be seen from the chart below, UK imports and exports have been in a steady downtrend for over a year.
Much of this trend is due to demand weakening over the past year, as the price of gas (a key production cost for glass) corrected to significantly lower levels, compared to the peak following the Russian invasion of Ukraine.
Persistently high interest rates have also had a restrictive impact on buyers’ ability to procure glass product. At the time of writing, interest rates in the UK are 5.25%, compared to 0.1% in 2021. Market sources have noted that buyers are increasingly substituting container glass for plastic bottles, which are significantly cheaper and lighter.
Source: HM Revenue and Customs, Mintec calculations
*bottles of colourless glass, of a kind used for commercial conveyance or packing of foodstuffs and beverages, of a nominal capacity of >0,33 l but <1 l
For reference, the Mintec Benchmark Prices (MBP) for clear UK medium food jar (275g-400g) was assessed at £559.97/MT in January, down 1.3% month-on-month (m-o-m), representing an 11.1% y-o-y decrease.
Although the market sentiment is predominantly bearish, market players stated that the potential for cuts to interest rates in the coming months may spark a rise in buying interest in the UK container glass market. Future interest rate cuts, sources say, would increase buyers’ borrowing power and ability to procure product.
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