The High Price of PE Become the Hot Topic in the Global Summit
According to two large plastic processors, PE may be abandoned by some product manufacturers due to high price.
The impact brought about by the high cost of PE resins has become the focus of discussion in 2014 global plastic summit.
2014 Global Plastics Summit held in Chicago, the agenda of the meeting is divided into two days. In the first day of the agenda, as well as North America’s leading manufacturer of large PE and PE processors involved, including some famous companies.
PE is the world’s most widely used commodity resins. In North America, since the beginning of 2013, the price of this resins has risen nearly 25 percent. According to Plastic News resin pricing table during the North America, the price has been rising for six times.
An executive vice president of sales and market said that his company would find a lot of manufacturers to abandon due to high price, instead of metal or paper materials. Including Canada’s two largest dairy companies.
One director said that they hoped to continue the growth of the packaging resin, but the resin market economy in the way of growth. He also added that they were trying to maintain the resin packaging this business in facing the alternative packaging.
Another vice president of a company global sourcing from the packaging giant company, pointed out that prices rose 25% in PE this stage, other resins, such as the price of PP, PS, as well as paper, tin, glass and other material rose by only 3-9%.
Some customers start thinking about whether they need to make changes, or to admit a mistake, because they do not know what extent the price will rise to in the end.
Although profits are already high, PE manufactures in North America are still rising and the pricing behavior lacks credibility. Prices rising is endless which have never had a rational discussion.
So the suppliers and the manufacturers do not hope the price of PE keep rising.
But in the end the North American market in September the price of PE has risen indeed, for some suppliers they said they were reluctant followers. In fact, higher oil price is the main factor that affect the price of global PE. In most parts of the world, oil is still the main raw material although North America and the Middle East has been used to a greater extent on natural gas.
From the above, you are easily find that PE has a close relationship with oil and this is the reason that PE is expensive. So we need to recollect them to save resource.
Our GREENMAX machines can handle PE easily and offer convenient to recyclers and processing manufacturers.