Plastic Prices Hit Record High to Stoke Inflation Concerns

As production picks up after the Spring Festival holidays, Chinese factories are confronting plastic raw material prices.

 

For anyone looking for examples of inflation these days, raw materials are a good place to start. Not only the copper, steel — even lumber — are either near or at record highs.

And so too are plastics, which are often overlooked but are on a tear right now.

The cost of all raw material has continued to increase at an unexpected rate since Feb, 2012.

 

Some of the Tritan suppliers are now releasing limited amounts of 

tritan raw material into the market. 
In addition, other raw material costs are increasing. 

 

 

You are probably wondering, what is the cause of these price increases?

 

The reason:

 

1. Over the past few months, we have all experienced the value of the US Dollar fall significantly against the China Yuan. The yuan has risen more than 9% against the U.S. dollar since last June.

 

We have absorbed these currency fluctuation up to this point. However, this downward trend in exchange rates has forced us to re-evaluate our situation.

 

1. The global shortage of shipping containers has led to a sharp rise in freight costs from Asia to both Europe and the US.

 

 

1. The U.S. has become the world’s biggest exporter of the plastic in recent years. The US market needs a large amount the tritan material cups. We import the tritan raw material from Eastman, USA.