Due to significant market fluctuations, we will be forced to increase our prices on Polypropylene fabricated products. The Global Economic Conditions (COVID-19 Pandemic and the February Winter Storms crippling the Oil and Gas Industry in the Gulf) has significantly affected supply chain and raw material manufacturing. In addition to the decline in production, The US Defense Production Act has stepped in to secure Polypropylene raw materials used for PPE and Hygiene Products. It is estimated that the Global Polypropylene market will grow by 12.26 billion dollars during 2020-2024 according to Technavio.
These events lead to Plastic Design, Inc. receiving notification of a huge and unexpected price increase from our primary plastic sheet supplier. Additional supporting documentation evoking a “Force Majeure” type situation – effective immediately. It was well beyond the scope of anything we have seen in the past and something we will not be able to absorb. The long-term impacts of these increases are yet to be determined.
We are working closely with our suppliers making every effort to negotiate a solution to deal with this development. This includes bringing in extra inventory in an effort to hold pricing as long as possible. However, we expect these new prices to take effect on Monday, March 29, 2021, and will potentially impact orders invoiced after this date.
Please check your inventory and see if you need anything or would like to purchase additional inventory until these market conditions stabilizes. If you have any questions or would like to speak to someone directly about this change, please do not hesitate to call us at 978-251-4830.