With rapidly rising resin prices, now is the time to consult Smithers Rapra on material replacement or grade substitution.

A major concern for manufacturers of plastic products in recent months has been the steady increase in plastic prices, particularly the high rises in recent weeks. Material costs are posing a significant economic challenge to manufacturers in high volume markets.

Price rises follow the current cost of crude oil, the big question is, will the market harmonise and return to the prices of just 12 months ago? There can be no prediction as to the extent of future price changes due to the complex relationship with oil and gas commodity prices. The best and safest option is to assume a worst case scenario and anticipate further price increases. Manufacturers of plastic products are faced with an economic burden as they depend on a reliable, continuous supply of competitively priced plastic resin to maintain profitability.

Over recent weeks Smithers Rapra has been approached by manufacturer’s for possible solutions to limit the impact of rising material prices by investigating material substitution. As independent consultants, Smithers Rapra can take advantage of the free market and offer some leverage for price improvement by identifying alternative grades of raw materials which provide similar or improved performance at reduced cost.

It is unlikely plastic prices will return to the levels of 2007, medium term they may well harmonise but long term plastic producers will have to be willing to react to changes in order to remain competitive. Moulders must continue to find new innovative ways to keep costs down, identify new materials, sources and material alternatives. Smithers Rapra has the expertise and know how to help you with that process.

The global demand for oil and gas will reach a point where demand will force prices to a point where the effects will be profound on the Plastic Industry. To discover if Smithers Rapra can help you cut costs submit your query to the Enquiry Bureau; info@rapra.net or by calling 01939 252413