CPIA forecasts continued resin shortages, price increases
Canadian PlasticsCanadian Plastics
Plastics processors can continue to expect price increases on polymers resulting from damage to petrochemical facil...
Plastics processors can continue to expect price increases on polymers resulting from damage to petrochemical facilities on the Gulf Coast, according to the Canadian Plastics Industry Association (CPIA).
Polyetheylene and polystyrene supplies were severeley curtailed after Hurricanes Katrina and Rita swept through the region, the CPIA reported. At one point, as much as 50 per cent and 85 per cent of PE capacity and styrene capacity, respectively, were offline.
Many suppliers invoked Force Majeure and the capacity that remains offline may take months to repair. Serious transportation and infrastructure problems will continue, exacerbating the situation, the CPIA reported.
Additionally, natural gas prices have reached US$14 per million BTUs but prices are expect to reach more moderate levels sometime in 2006.