Did you know that, as per the British Plastics Federation, for the first time in six months in January 2023 polystyrene prices and EPS prices witnessed an upward price trajectory due to increased styrene reference contractsz
Polymer prices trajectory is not just limited to the dynamics of demand and supply, it goes above and beyond that. Prices are one of the key reasons that make a deal or break a deal be it in the polymer sector or any other sector for that matter. If prices are reasonable, a customer will make a quick decision to buy.
It’s because when it comes to making a business (read purchase) decision which revolves around a huge amount, such as polymer raw materials, consumers rely on various sources of information. If we break down a consumer’s decision-making process, it boils down to a few steps such as:
· Gathering information
· Information evaluation
· Shortlisting buyers
· Making purchase
Technological Intervention
Embracing technology over a period of time, this old-school decision-making process has undergone tremendous changes. Now, one has everything at their disposal around the clock. In a matter of a few clicks and taps, you can browse or even download loads of information about the overall market as well as a specific product before you make a decision. With market intel and information available with ease, the mammoth task is to take the raw information available and analyse it to make the right decision.
Ultimate Deciding Factor
At the time of making a purchase decision, knowing the polymer prices and being able to guess the price trajectory is of utmost importance. It’s because only the right prices seal the deal. By right prices, we mean prices at par with the supply-demand dynamics.
Generally, price is the main talking point about any deal be it related to polymer or any other commodity. In the polymer market landscape, there are an array of suppliers. As a result of cut-throat competition, the prices are bound to be highly competitive. Barring exceptions, the polymer raw material prices (such as PVC resin) remain relatively uniform, so the only basis for selling the product is its price. By default, purchasers compare polymer prices today with the prices of different companies which enables them to zero down on the best offer. It’s safe to say that the price is the only deciding factor which can make a deal or break a deal.
Impacting Factors
Polymer is one such material which is traded by manufacturing countries across the globe. There are certain factors at play that determine the polymer prices:
- Crude Oil: Polymer is derived from natural gas, coal, and crude oil. Polymer prices tend to move as per crude oil price movement. Sharing a direct relationship with prices, when the crude prices go up then the polymer grades such as HDPE, LLDPE, and LDPE, prices, are likely to move on the upper side as well.
- Maintenance Activities: At frequent intervals, plant and machinery servicing is required so that the polymer production process runs smoothly without causing any production halts. Polymer manufacturers, be it OPAL, Reliance, IOCL, GAIL, HMEL, MRPL, Haldia etc. shut down their plants from time to time in order to carry out their maintenance activities. This, in turn, affects production on a temporary basis which impacts polymer prices today.
- Trade Deals: In case there is any re-negotiation in trade deals, with immediate effect it will change the impact of import and export trade volume. This will impact demand-supply dynamics and these dynamics will impact pricing as simple as that.
- Geopolitical And Policy Changes: Different geopolitical events such as the ongoing war between Russia and Ukraine, the Red Sea crisis etc. affect the global crude oil supply. Being a crude oil derivative, the polymer prices also get impacted. Different policy changes, be it a rise in import duty on crude oil can create a surge in polymer rates.
Being high in demand all the time, it makes sense to keep a tab on factors impacting polymer prices.
Over To You
At times it can get difficult to predict changes in polymer pricing trajectory, this is where knowing the key factors at play comes in handy. Using historical price trends, potential price trajectories can be predicted to a certain extent.
At weekly intervals, the polymer manufacturers share their price sheets such as Reliance PP price, and PVC resin price today. If you want first-hand price information, you can only get that at a weekly frequency. By tracking the price change, you can come across various patterns that can help you predict the possible price landscape and stay one step ahead of the market.
