Oil’s effect on polybag pricing; Occasional volatility, but mostly stable

Some of you may have noticed recently that polybag pricing has been a bit up and down.

As a packaging company, we pride ourselves in offering a large variety of these very versatile and widely used products. Some are heat-sealed, while others are “stitched” or adhesive bonded. Some incorporate zip closures while others are self-sealing. Some have handles. Any can be customized with logos, messages, warnings, etc.

As you know, the price you pay for finished goods is most profoundly affected by the cost of the raw materials used in their manufacture. With plastics, the resins used in polybag production are petroleum-based polypropylene, and as such are tied closely to crude oil prices. Most finished goods pricing remains stable when there is a minor blip here and there in oil. Enough of a rise or fall typically results in slightly higher or lower finished goods prices.

As one apparel manufacturer notes on its website, costing out polybags isn’t always a cut-and-dried exercise. Factors such as quantity, styles, sealing and customization all factor into the price of the finished good.

Raw material volatility is a normal occurrence in any industry. For example, in the first month of 2017 alone, prices for polypropylene jumped about 10 cents a pound, according to industry reports. The three months before, polypropylene prices had fallen by almost the same amount.

As of April 2018, prices are very favorable for buyers and industry sources expect them to remain fairly stable the remainder of this year.

To discuss pricing, contact your Corrbox representative today at (877) 267-7269.

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