We’re sure this isn’t news to many of you, but indices such as Chem Data (CDI), CMAI, and Plastics News are all seeing broad declines in the costs of various resins. Polypropylene seems to be taking the hardest hit in the last two months, followed by PET, and PE. Not only are lower commodity prices due to the falling price of oil, but they are also falling because of large inventories and the strengthening U.S. dollar.
Most of our customers can’t wait to take advantage of falling resin prices, and are always extremely pleased when we pass through the savings from a lower resin cost. If your container or bottle supplier is not passing through these savings to you, please feel free to reach out to our sales team about a quote that’s tied to one of the benchmarks above. Transparency is a value of ours, and we always tell our customers the reasons for changes.
Some interesting things about the various benchmarks listed above: Chem Data and CMAI were the first to announce lower pricing, and Plastics News seems to be lagging a little bit. Generally, these indices are all very in tune with the market, but announce at different rates. Chem Data has always announced resin pricing as early as possible, even if it means that they have to go back and update the ‘actual’ price after one month. CMAI has always fallen between the other two, and is generally pretty accurate. Plastics News usually lags behind a little bit and is also extremely accurate, with minimal corrections.
If you have any questions about the various benchmarks we use, we are happy to answer your questions!