Plastic prices are currently at a record high, but in the aftermath of Hurricane Ida, prices could increase even more. The United States Gulf Region manufactures nearly 20% of global ethylene, but with power outages and record damage, supply is severely threatened, which can impact the supply of polymers used in everyday household items and industrial pipes.
Miami, FL -- (SBWIRE) -- 09/02/2021 -- After an unusual freeze in February, the Gulf Coast contracts for polypropylene along with high-density polyethylene are trading at some of the highest ever recorded levels. Severe weather in 2021 has significantly increased consumer demand. It is estimated that there will be a 45% jump per metric ton.
ICIS, a leading data provider's Head of North America Market Development, Jeremy Pafford, predicts a significant change, "Long-term outages induced by tropical weather could fuel stratospheric price rises that downstream supply chains and consumers cannot easily afford...With the majority of U.S. commodity plastic resin capacity stationed on the Texas and Louisiana coasts, one devastating hit could bring months' worth of polyethylene, polypropylene, and/or polystyrene shortages."
The effects of Hurricane Ida can be especially devastating as the gulf region has spent most of 2021 recovering from severe winter weather. The supply strain surged consumer demand for goods and packaging, while worldwide shipping restrictions impeded the chemical supply chain, causing prices to skyrocket.
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