It is unlikely you can live a day in 2023 without plastic. Plastics are used in almost everything a modern consumer requires from food containers to cell phones. This critical commodity has recently seen sky-high prices, however despite rising inflation costs, plastic prices are dipping down to record lows. How will this change affect your business and budget specifically regarding plastic pallets? In this article, Plastic Pallet Pros wants to help uncover how your business can benefit from dipping plastic costs.
KEY TAKEAWAYS
Global supply chain industry leaders are concerned about inflation however market trends indicate the cost of plastic is at an all-time low. Here are 2 factors Plastic Pallet Pros attributes to dropping prices:
- As the derivatives of plastic are directly linked to oil manufacturing as oil prices fluctuate so will the price of plastic.
- Exporting and demand for plastic seem to be undergoing a global shift with China importing lower levels than in previous years.
For clients or potential buyers who have shied away from investigating the power of plastic pallets in their applications, Plastic Pallet Pros says now is the time to ask, “How much can switching to plastic pallets save me?”.
Uncovering The Price of Plastic
First, let’s uncover what determines plastic prices. As the price of plastics is closely tied to oil manufacturing, when oil prices fluctuate, or fall as in our current condition, it leads to lower production costs. The polyethylene derived from oil distribution, which has recently dropped, is used to create plastic pellets or nurdles. Current market trends indicate we are seeing record low prices for plastic benefiting the global supply chain. Some forecasts say the costs may yet go down in the next twelve months.
China’s Influence In The Market
In addition, China’s plastic consumption has slowed down significantly. This may be in part to the Chinese government targeting their products for retaliatory duties to strike back against U.S. tariffs or the strict COVID lockdowns creating less consumer consumption. Whatever the reason, what we know is that United States exports of polyethylene to China dropped sharply in the second half of 2022. Export is not struggling, however, and other parts of the planet are poised to purchase plastic leading some U.S.-based manufacturing to move towards production.
What Does That Mean To You
In the end, how much does all this really mean for our clients and customers? At Plastic Pallet Pros we think it is time for plastic pallets to shine. Plastic pallets, and plastic bins, are the reliable and durable workhorse your warehouse or application needs. Plastic products have many qualities making them a better choice, however many businesses have always blamed price as the main contributing factor to not switching to plastic pallets or recycled plastic pallets. Now is the time to leave that argument behind. Switching from wood to Plastic Pallets could start saving you money today.
While there are many factors that could affect the price of plastic including oil production and a shift in overseas demand, it is the current threat of rising inflation that have most global supply chain industry leaders’ attention. Plastic Pallet Pros guarantees that our plastic pallets will offer value to your current applications helping your bottom line even in times of highs and lows. Plus, plastic pallets are better for the environment.
When you are ready to harness the power of plastic contact Plastic Pallet Pros, the most trusted plastic pallet supplier at 1-877-651-7816.
