[vc_row][vc_column][vc_column_text css=”.vc_custom_1629955321441{margin-bottom: 0px !important;}”]Will increasing feedstock costs be absorbed by polymer producers?

As depicted in the graph below, the historical link between feedstock cost and polymer prices decoupled in March/April, with polymer prices being driven by supply demand balance for plastic raw materials, rather than any changes in feedstock input costs. Whilst the demand for plastic raw materials is now more closely matched with supply, July has witnessed strong increases in monomer prices, which has left buyers and sellers to mull over what is going to happen to polymer prices.

Most buyers are arguing the case that it should be for producers to absorb these additional costs given that the margins for polymer producers remain quite bloated by historical standards. However, the demand/availability situation for polymers lacks real clarity and it is possible that any increase in demand, including any price stimulus, could tip the supply demand balance back in favour of the producers.

It is also evident that the supply situation is very mixed depending upon producer and grade, with some producers continuing to take a rather firm stance on price in order to quell demand. In summary, the pricing situation continues to be rather complicated with a range of different factors coming into play.[/vc_column_text][vc_single_image image=”6648″ img_size=”full”][/vc_column][/vc_row][vc_row][vc_column][vc_btn title=”Download (PDF)” style=”flat” color=”green” i_icon_fontawesome=”fa fa-arrow-down” add_icon=”true” link=”url:https%3A%2F%2Fwww.plastribution.co.uk%2Fwp-content%2Fuploads%2F2021%2F08%2Fpla0504_aug-price-know-how.pdf||target:%20_blank|”][mk_padding_divider size=”20″][/vc_column][/vc_row][vc_row fullwidth=”true”][vc_column][vc_raw_html]JTVCZGZsaXAlMjBpZCUzRCUyMjY2NDYlMjIlNUQlNUIlMkZkZmxpcCU1RA==[/vc_raw_html][/vc_column][/vc_row]

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