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Shipping Boxes Wholesale Blog

Industry Responds to Poly Increases – September 2012

Posted August 21, 2012

Due to rising feedstock costs, low inventories, and improving global and domestic market demand, our resin suppliers have informed us of their intentions to implement a previously announced resin increase effective August 1st. In addition to this August increase, our suppliers have also announced another increase of $.03 to $.05 for September 1st, which we will monitor and address at a later date. In addition to this latest resin increase we have absorbed rising costs in freight, additives, packaging, labor, utilities, insurance, etc. that now we must pass on.
 
U.S. Stretch Film Producer August 2012
 
In response to the August 1st resin increase, all new orders received on or after August 27th will be priced at a 5% increase. All orders must call for immediate delivery. Based on current lead-times and shortness of resin supply, we can only accept a limited number of new orders and will be limited to less than one month of your normal purchase levels. Pricing for orders accepted is based upon local lead-times and available resin.
 
U.S. Stretch Film Producer August 2012
  
Rising energy and feedstock costs and vigorous export demand have triggered a swift reversal of the favorable pricing trends in play earlier this summer. In July, as prices turned upward, many buyers stocked up. This further increased pressure on available supply. Today LDPE and LLDPE resin prices are on the rise at a pace not seen since last fall.
 
Effective Tuesday, September 4, stock item prices will increase 5 %.
 
As always, we offer our distributors a full 30-day notice. Orders placed by the end of the day September 3 and shipped within 30 days will be billed at current pricing.
PE Film Producer August 2012
  
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