Plastic Packaging Bag’s – Poly Resin Price Increases… Justified or Greedy?
For the last 6 months of 2011, resin producers were hard at work each month trying to push through price increases. Month after month they tried and failed, as the market wouldn’t bare it. The summer did not produce any hurricanes that warranted the spikes in the market as previous years, much to their chagrin! The mild start to the winter has yet to give way to the huge increases they were expecting for December 2011 – January 2012. Are the resin producers seriously justified in their recent pushes for nearly .18/lb? Was the recent 5 cent/lb increase their plan all along?? They kind of snuck it in on us while everyone was enjoying time off with their families during the holidays! After all, that 5 cent/lb was only attempted 8 previous times…why not push it through when no one is looking? Should we be grateful it was only 5 cents and not the original .18? January is not over yet, I know…Be careful…the temperatures are starting to dip. Any excuse they can take will be taken, that is what we have learned over the years! The flip side is that we did enjoy a very soft 6 months in 2011. So, you be the judge…Justified? Or, Just Plain Greedy? Remember, the most consistent thing about our market is its inconsistency!!
P.S. As this was being written, resin producers pushed and got another .06/lb. increase for January contracts and are not stopping there. So far 2012 it’s looking like a full .11/lb. will stand and who knows how far up it will continue as they are pushing for .05/lb. more for February contracts. All of these increases affect custom poly bags and film pricing pretty much as they happen. However, because of our large inventory of finished goods, we are able to hold current pricing on all stock poly bags and ziplock bags. Eventually you can count on increases there too.
Check back for the most up to date market information frequently. Also check out Plastic Industry News Page for more information on pricing.
Chart provided by The Plastics Exchange.
We will openly discuss the fluctuations across the polyethylene market that will provide transparancy to the flexible and plastic packaging market pricing. As always, your comments are welcome!
By: Lynn Morgan, Distributor Sales Manager