The global resin market, an essential raw material for the production of coated fabrics used in the manufacturing of truck and trailer tarps, is undergoing significant disruption. Since the beginning of the year, global prices for polyethylene (PE) and polypropylene (PP) resin have seen dramatic increases, with prices rising by as much as $0.19 per pound for PE and $0.17 per pound for PP.
Furthermore, China and India are currently purchasing all available resin for the production of personal protective equipment, amidst the ongoing COVID-19 situation. Additionally, recent winter storms in the southwestern United States, notably in Texas, have affected 80 to 85% of US PE and PP production, and the logistics of this raw material have also been impacted by the complete closure of the Port of Houston, rail services, resin warehouses, and highways.
All these disruptions in the global market are forcing coated fabric producers to review their prices, explains Alex Petizian of Naizil Inc.
“Due to the global resin shortage, rising plasticizer prices, and overall market conditions, it has become necessary for Naizil Inc to increase its prices effective April 1, 2021. The prices of these raw materials remain unstable in the markets, and we hope that supply will adjust in the coming months.”
However, it is better to be safe than sorry! Therefore, we suggest to our customers not to delay in replenishing their tarp inventory to avoid a potential shortage.
Alyak 2000 has taken proactive steps by ordering more coated fabrics to ensure adequate supply for its loyal customers.
But the prices of truck and trailer tarps will also need to reflect the increase in raw material prices. Alyak 2000 is working closely with Naizil to minimize the impact of these price increases as much as possible and to continue tarp manufacturing in the coming months.
For more information on global prices and resin availability, we invite you to follow the news in the plastics industry on the Plastics Today website at https://www.plasticstoday.com.
