Poly Resin Price Increases… Justified or Greedy? – Part 2

Well, here we go again! I guess everyone is already getting the letters, emails and faxes about the resin being on the rise again! Of course, just in case you didn’t get an “official notice”, I am positive you have filled up your car within the last three weeks; unless you drive one of those electric ones and in that case, are you going to be in for sticker shock!! Gas is on the rise, but, the price of crude oil has dropped. What is wrong with this picture? The mild winter? Perhaps! But, we cannot enjoy a stable market now can we?! What would be the fun in that? The resin producers have cut back on production, part in order to drive up the price!! Low Inventories?? Sure….because you cut production!! Let’s recap…no hurricanes this summer…a mild winter. Can’t you picture these guys all sitting in a room with their three piece suits on trying to figure out how to get this next increase Justified? Well, like it or not, it is here! I guess we should be thankful it is as small as it is for the low density polyethylene market because the polypropylene market is taking an absolute beating right now! Six more cents on top of the January increase of five cents. Eleven cents in two months, okay, considering the PP market just got hit with .15 cents inside of one month! Order early and often as there is another increase on the table for March and it is for 7 cents. You know, if the suits get their way, it will be coming our way the first part of March and not the end!! Justified? Or Just Plain Greedy? You be the judge.

Chart provided by The Plastics Exchange. http://www.theplasticexchange.com

 

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