Tight Supply of Both Feedstocks and Polymers Continues to Fuel Price Inflation.
It appears that no polymer is excluded from increasing prices, whether the cause be related to inflation in feedstock costs, tightness in polymer supply, or a combination of both. And for any polymer groups where price increases are not yet evident, it is probably just a question of time. The impact in the UK is, in some cases, exasperated as the price latency resultant from the BREXIT devaluation is finally being compensated in full; evidence of which comes from those application areas where price is most volatile and supply is dominated by imports. These economic fundamentals are very evident in areas such as LLDPE C4 film grades and HDPE blow moulding materials.
Whilst the markets for standard polymers are more accustomed to price volatility, events over the last few months in the styrene monomer and styrenics polymer sector are possibly without precedent. Between December and February, the ‘Syrenics Basket’ used as a reference in this report has increased in price by over 30%! Possibly the most realistic hope for buyers in this sector is that, as the rate of increase appears to be slowing, and the cost of benzene falling, there will be an opportunity to pass price inflation through the supply chain.
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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.