Plastics Pricing Trends for the Last 5 Years

Over the last 5 years, the price of plastic has changed drastically. The recent upward swing of pricing trends along with supply chain issues with plastics leaves many people contemplating what has changed and what the future market may hold. 

Let’s discuss the cost of plastics since 2017, what has changed the plastics market in recent years, supply chain issues, and various costs associated with utilizing plastic construction products.

Before detailing the changes in plastics costs, let’s make sure the source of information is understood. One way to glean an overview of market trends is to look at specific producer price indexes. The Producer Price Index for Plastic Construction Products describes the average change over time in the selling prices of plastic construction materials by domestic producers. The figures are calculated by dividing the current prices received by plastic sellers by their prices in 1982 multiplied by 100. A higher producer price means that builders, and subsequently consumers, will pay more when they buy, and the inverse is also true. 

Let’s take a closer look at the numbers over the last five years. In August of 2017, the Plastics Construction Products PPI was 218.200, which means that the real world price has risen by 118.2% in comparison to the price in 1982. It peaked in January 2019 at 230.100. In January 2020, the number was 229.300, with relatively small fluctuations through June 2020 when the number started rising. The escalations took on a rapid pace in January of 2021 that has not yet subsided. Between early 2021 and early 2022, the price of plastic construction materials rose 35.6%. In June 2022, the PPI reached 357.781, which is a 257.781% increase from the price in the base year of 1982. 

The slight fluctuations and gradual increases in price from 2017 to early 2020 can be attributed to inflation and normal shifts in market conditions. Obviously, the Covid-19 pandemic drastically affected the plastics industry, just like everything else. However, the effect was not apparent in the pricing trends until consumers and businesses began returning to many aspects of normal life towards the end of 2020 and the beginning of 2021. The demand was shaped by the new work-from-home and stay-at-home lifestyle and additional cash from stimulus checks. Demand for construction and home improvement projects increased while manufacturing, shipping, and supply chain issues mounted. 

A significant factor in the plastic pricing trends is the crude oil market, as plastics are made from crude oil and crude oil is also refined into the fuel used to transport plastics. When the price of oil and gas rises, the price of plastics rises as well. Gasoline prices rose in 2018 when the U.S. pulled out of the Iran nuclear agreement, and the price of plastics rose as well. When Russia invaded Ukraine in February of 2022, the crude oil market was further strained and gas prices skyrocketed. 

The year 2021 may become known as the year of supply chain issues. The plastics industry suffered supply chain disruptions caused by numerous issues. Between the Covid-19 pandemic, shipping container shortages, factory fires, extreme weather, a ship blocking the Suez Canal, deteriorating relationships between the U.S. and China, strained capacity at ports, increased semiconductor shortages, factory closures, and production delays, the raw materials of plastics are in short supply. 

Throughout 2021 and into 2022, many people began returning to activities that had previously been on hold. Many companies were already facing low inventories, had been forced to raise prices, had high rates of delinquent shipments, and had lengthy order timelines. Demand surged as the economy opened back up and this further strained the existing supply chain issues. Wherever possible, companies have responded by assessing supply chain vulnerabilities and taking action before disruptions hit.

The cost of all construction materials, manufacturing, and shipping are on an upward trend. The price of number two diesel fuel skyrocketed in 2021 and 2022, with a 199.5% increase in May 2021 and an 111.1% increase in June 2022. Amidst a myriad of supply chain issues, shifts in demand, and market changes, the need for plastics in the construction industry remains strong and is predicted to continue to increase. In 2022, the Construction Plastics Market is valued at $113.30 billion and is expected to reach $200.49 billion by 2030. 

As a leading member of the plastics industry, Onduline is committed to providing the highest value to professional and DIY customers across the globe for many decades to come. Onduline has been manufacturing roofing materials and cladding systems for over 75 years. In North America, the Tuftex® brand provides quality corrugated plastics for a variety of agricultural and professional plastics applications. For more industry information and professional products, contact Onduline today.