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What Factors Determine Polymer Pricing?

What Factors Determine Polymer Pricing?

In today’s society, prices fluctuate for nearly everything. This holds true with polymer pricing throughout the world. Though it is becoming more difficult to predict, there are a few consistent factors that allow us to predict a possible rise in Polymer pricing.  

  1. The fundamental ingredients that determine the cost to product polymer. For instance, if the cost of the oils involved in production are raised, then the cost of the polymer will likely go up as well.
  2. Low or high inventories can raise or lower prices. Most suppliers will price polymers more competitively if they have a high supply towards the end of the year, because they don’t want to carry that inventory on to the next year.
  3. While it may seem obvious, the demand plays a large role in the cost of polymers.
  4. When capacity adjustments need to be made by poly producers, it affects the cost as well. When a poly producer needs to shut down for maintenance it affects how much they can produce, therefore, having an affect on the price of the resins.
  5. Trends among different industries have a hand in the prices of the industry as well. The demand for pre-packaged food is growing, so the need for plastics is growing.
  6. Importing and exporting finished goods have been critical for resin sales. Any re-negotiation in trade deals could significantly change important and export flows.

These are just a few of the factors that could play a major role in the price changes in polymer throughout the course of time. It can be tough to accurately predict the change in pricing, but there are many different legitimate reasons for the fluctuation. Call Plastic Service Center today to discuss your polymer needs and we'll put a quote together for you! (586) 307-3900