Resin availability disrupted

Flat cardboard boxes that have sections etched out of the fiber

As the damaging winds and catastrophic flooding of Hurricane Harvey begin to subside, sources report that over 70% of Texas’ ethylene resin production – half of the United States’ ethylene capacity – has been taken off line. Many of you have reached out to us to inquire about polyethylene availability and pricing.

We are closely monitoring affected raw material production and transportation logistics throughout the Texas Gulf Coast. We continue to leverage our buying power to maintain a more stable supply; however, you should know that resin availability will remain problematic in the weeks ahead. It is an evolving situation for resin producers, and for America’s packaging distributors.

Resin costs have already risen sharply and we are told they will continue to do so at a brisk pace. Expect custom item pricing to move with this turbulent market. The strength of our stock position, however, allows us to guarantee stock pricing for 30 days.

It’s too early to know what fair pricing will be in 30 days, but you can know we will make the most moderate adjustment the market allows. We are resisting enormous market pressures in holding stock prices today, and we will work in the same spirit as Texas emerges from the effects of Harvey.

Please consider adding a buffer in your lead-time calculations and contact us with any concerns.

As reported from Mark Bourgeois, at Laddawn

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