The plastics market is currently undergoing a period of unprecedented market instability. The cause is a combination of factors impacting raw materials, production plants and the supply chain, all at the same time. The results have been dramatic; shortages of some basic component raw materials and precursors have resulted in shortages of basic resins. This has been compounded by the extreme weather events in the USA that have closed production plants, especially in Texas and the gulf coast, but also impacting plants around the world.
The impact has led to numerous production plants and resin suppliers reporting force majeure as prices have spiraled upwards, with one increase impacting another. The entire plastics industry seems to have been taken by surprise by the extremely rapid developments, especially the price