In our last post, we mentioned that our own resin supply should be unaffected by Hurricane Harvey, but that resin costs would likely be on the rise. As predicted, the rounds of resin price increases proposed over the past couple months have been bolstered by the production disruptions, and it now looks like both of the recent increases totaling $.07/lb will go through.
As for our own supply, we are closely monitoring our resin supplies and do not expect that we will have any issues.
From The Plastics Exchange‘s most recent update:
“Although the $.03/lb polyethylene increase slated for August was unlikely to take hold, Hurricane Harvey came along to instead seal the deal with swift and full implementation. At the time, there were only two PE producers that had issued an additional $.04/lb increase for Sept contracts, but after the storm, the balance of producers nominated their own $.04/lb increases with target dates of either Sept 15th or Oct 1st. Given the massive supply disruptions, we expect these additional increases to also become solid.”
Looking ahead, it’s difficult to say if there will be more increases beyond these—much depends on how quickly and easily producers can get back to business as usual. As always, we’ll keep you updated on significant developments as they come through.
If you have any questions or comments about this update or anything else at all, please send us an email or call us at (800) 272-2634. Thank you for your continued business, and we look forward to serving you.