Price know-how August 2016

Brexit Immediate Aftermath Continues to Dominate the Plastics Market

Whether BREXIT will be regarded as the reason or simply the trigger for an economic slow-down, or if indeed other factors are of influence, is unlikely to be known for some time. However, on the back of both economic uncertainty and plentiful supply, the price of crude oil appears to be softening from its early June highs of around $50 per barrel, and has fallen back some 16% back to the low $40s.

Of course, over the last 15 months the price of oil and volume polymers have been almost entirely disconnected.  Supply and demand fundamentals in the plastics market have dominated price behaviour.  However, the question still remains, if, or when, will more normal fundamentals apply and oil price be a key driver of polymer price.  Whilst we are not there yet, many players believe that the change is getting ever closer.

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The concept of a user friendly market report came from feedback about an article published in PRW (Plastics & Rubber Weekly) about the 2011 market outlook to which Plastribution made a significant contribution.