PETALING JAYA: The easing of resin prices in the coming months bodes well for SCGM Bhd
, which has had to combat rising cost pressure in recent months to protect its margins.
The food packaging producer had adjusted its average selling prices (ASPs) by around seven times since last November, as rising oil prices and tight supplies pushed resin prices to a decade high.
SCGM noted that while resin prices are expected to moderate in the coming months, they are unlikely to revisit the low levels of last year. The group is currently streamlining its operations by shifting to higher value-added products to help mitigate margin pressure.
...