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Price Development of HDPE – Plastic

The development of raw materials prices has been marked by a sharp downward spin over the last few months. The decrease in costs has been passed on to our customers in the significant areas.


The current situation for standard thermoplastics on the European markets has been developing dramatically since the beginning of April and a development of this kind has never been seen before. There have always been recurring phases of radical price turnarounds, accompanied by sharp increases, but these were mostly coupled with sharp increases in costs. However this is not currently the case, especially with regard to standard thermoplastics.


We received the information that five major producers had declared "force majeure" consequently leading to supply shortages, reductions in volume as well as announcements stating the suspension of deliveries.


A definite supply shortage is already being felt accompanied by a hard-hitting price increase for plastic granules.


The GGAWB - Materials Cost Index can be downloaded as a PDF from the website. The price development of HDPE plastics is based on the most important established price indexes that the waste and recycling container manufacturers are also subject to regarding materials procurement.


The RAL-Quality Control Association for Waste and Recycling Containers would, for this reason, like to emphasize that the development of raw materials prices will not lead to a decline in the quality and safety of recycling containers from manufacturers who are members of the association.


To date, manufacturers have foregone the necessary price adjustments to maintain price stability. However, the recurring increases in the price of raw materials as well as announcements of even further increases have finally forced producers to relay some of these enormous additional costs so that they can continue to offer RAL quality.


The increase in raw materials prices will inevitably affect the selling prices for waste and recycling containers.

 
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