Ever wonder why the price of plastic fluctuates so much? There can be many reasons why prices of plastic raw materials fluctuates. These reasons include how much consumers want to purchase plastic, how much plastic is available for sale, and what is taking place in the global market. These implications can help understand what can be the reason that plastic prices are not the same.
To appreciate why plastic prices fluctuate so often, we have to delve into some fundamentals of money and trading. The saying goes, "When many people want plastic, that means high demand. We say there is low demand, if there is a lot of plastic available but not many people want to buy it. When this plastic is broad demand, its cost is higher, as there is not much for all who want. The implication is higher prices are possible to sellers. But when so much plastic becomes available that not enough people to buy it, the price goes down. The decrease in demand for the product forces sellers to drop the price to sell more.
For instance, let’s imagine that there’s suddenly greater demand for plastic to use in making toys or containers or other products by people in China. That’s when plastic actually gets expensive because China is one of the largest consumers and producers of plastic products. After all, oil is a key ingredient in making plastic, so if the price of oil rises, the cost of making plastic also rises. So when oil prices go up, plastic prices tend to go up too.
This means that it is not so easy to predict where the prices of raw materials will be headed in the future, as many factors can change quickly. But businesses still need to have a good idea of what the prices in the future will be so they can plan well enough. Environmental Masterbatch considers all trends in the market. Our work involves understanding how much plastic people are going to want, how much is available, and other relevant factors. This gives us the ability to make reasoned projections about the future price of plastic raw materials over the upcoming months and years.
Plastic is not the same price as twenty years ago. As an example HDPE (a very common type of plastic) was about $1200 per ton (1000kg) back in 2018. In 2021 the price of one ton reached almost $1900. It also indicates how much prices can fluctuate over a few years.
At Environmental Masterbatch we closely monitor the market, and plastic prices. We are training on data until October 2023: This is significant because we wish to provide customers the latest as well as the best of info. If we know the prices, the broker can give his clients time to plan their production process in a way that allows them to take a maximum profit.
In summary, several reasons cause the variation in prices of plastic raw materials. This would be how much plastic is out there, how much people want to buy, and what’s going on in the global marketplace.” At Environmental Masterbatch, we assist our clients in forecasting these prices, monitoring the market trends closely, and optimizing their production process. It allows them to earn a higher profit and thrive in their business.
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