What’s the reason for the recent price increases on plastic sheeting?
Back to Back Price Increases
If you’ve been wondering why the price of plastic sheeting products seems to be getting more expensive with every purchase, you aren’t the only one. Over the last few months, there have been quite a few price increases, and we want to help you understand the reasons why.
It’s not a secret that shortages have become widespread, and the cost of goods has increased exponentially. A snowball effect from the pandemic and arctic weather across the Gulf region has impacted multiple markets that use gas and oil products, including the plastic sheeting industry and shipping companies.
Cost of Resin
According to plasticstoday.com, polyethylene prices tacked on $0.10/lb, while polypropylene shot up another $0.12/lb by the close of business on Feb 26th. In addition to the price increase of resin, the winter storm that hit Texas last month added to the problem by knocking out the power and preventing major PE producers from operating causing a massive loss of at least two billion pounds of resin. While the supply-demand is increasing, so is the challenge of sourcing resin.
Cost of Freight
Freight costs have skyrocketed because of the rise in crude oil prices. These costs have affected shipping export and import to several countries, including the US, UK, and South America. Many people believe this could be due to the handful of firms who control the shipping lines taking advantage of the increasing demand by monopolizing costs. Likely, you’ve personally felt the effects of the swelling gas and diesel prices at the pump as well.
Meeting Your Plastic Sheeting Needs
While supply-demand, arctic weather, and a pandemic are driving the price increases, we hope that it’s only a matter of time before things even out. At Americover we are trying our best to meet your plastic sheeting needs with high-quality products and competitive pricing. Please contact us directly at (866) 789-3641 if you have any questions or concerns about pricing, stock, or lead times.