Industry News

Material Cost Update (PVC) – October 2017

On October 12, 2017 | by Formtech | in Featured News, Industry News

Almost two months after Hurricane Harvey, its effects on PVC pricing is still radiating through the industry. Though a five-cent increase was expected in October, but only a 2.5-3¢ increase turned out to be realistic thanks to a decline in PVC exports and an ethylene contract settlement of 3-5¢/lb. Sources at Resin Technology, Inc., Fort Worth, Texas, Houston-based PetroChemWire (PCW), and Michael Greenberg of The Plastics Exchange in Chicago seem to agree that though the recovery from the natural disaster has been faster than expected, challenges still exist in terms of production restarts, logistics, tight supplies, and raised resin prices.

Formosa and OxyVinyl both have multiple units still working up to full rates with Formosa’s force majeure on PVC still being in effect. It is estimated that the force majeure will remain through October.

For more, contact us or read Plastic Technology’s article, “Elevated Resin Prices Continue For Now.”

Material Cost Update (PVC) – August 2017

On August 16, 2017 | by Formtech | in Featured News, Industry News

Earlier this month, Formosa declared force majeure sales limits on specific PVC resins.  At first glance, the force majeure seemed to apply only to certain resins, which likely would not cause significant disruption for PVC compounds, processors, or end users – unless, of course, the force majeure period is significantly long or another disruption occurs in the industry.

However, talks are beginning about whether the force majeure could drive up PVC costs in the coming weeks.  Typically, PVC prices would be falling due to prices dropping for ethylene, which is a component of PVC compounds.  However, the combination of the Formosa force majeure and possible upcoming supply issues from Shintech, who has also experienced mechanical issues, is causing concern around the industry.  While Shintech’s customers have not reported delivery issues, some are questioning whether continued supply issues – especially as we head into a busy construction season – could affect PVC costs.  For more about these concerns, check out Plastic Technology’s article “Price Hikes Underway for PE; One Could Emerge for PVC“.

Force Majeure on Some PVC Resins – August 2017

On August 11, 2017 | by Formtech | in Featured News, Industry News

Attention All PVC Consumers!  According to Plastics News, certain PVC resins made by Formosa Plastics Corp. are limited in availability due to Formosa declaring force majeure sales limits on those materials.  Formosa is attributing the supply issues to a mechanical issue that will continue at least the next several weeks.  To find out more, check out Plastics News’s article “Formosa Declares Force Majeure on Some PVC Resins“.

 

 

Material Cost Update – July 2017

On July 20, 2017 | by Formtech | in Featured News, Industry News, Uncategorized

For some time now compound suppliers have been able to maximize pricing for domestic customers by selling into the global market to control  supply versus demand in North America. Crude oil prices continue to be depressed, and international pricing for materials like Polypropylene (PP) and Polyethylene (PE) have been under pressure for all markets, including custom plastic extrusion.

Formtech Plastic Compound Pellets

This has also put pressure on domestic suppliers, as pricing for their offshore business has been reduced. Even with the global situation, PP and PE compound suppliers were able to maintain pricing, and in some instances were even able to move their pricing by as much as $0.01 per pound. For the most part, however, pricing firmed up and maintained at previous levels for the month of June. In the end, pricing was pretty stable for the month. With the holiday shutdown for Independence Day remembrance, historically this has spelled a slow start to July for material suppliers.

At this point July pricing is a bit of a jump ball. Compound suppliers are looking to at least keep pricing stable for the month of July, and then push for some sort of increase in August. Large scale compound buyers claim to be well stocked for the month, and will be providing downward pressure for August. This could make for an interesting August, and our hope is the net effect of the push-back from plastic extrusion suppliers, injection molders, blow molders, and rotational molders across the country will keep the pricing pressure on compound suppliers for the month of August.

Formtech extrudes custom plastic profiles from a wide variety of thermoplastic materials, including Polyethylene, Polypropylene, ABS, PVC, Acrylic, Polycarbonate, Wood Plastic Composite (WPC) and others. Material pricing is a huge part of our cost for a plastic extrusion, and the purpose of our material cost updates is to provide information to our current and prospective customers for planning purposes.

We serve diverse industries with custom plastic extrusions, from building and construction to merchandising (point of purchase), commercial refrigeration, office furniture and others. Some examples of profiles we manufacture include glass weatherstrip, exterior door jambs, plastic tubing, vinyl seawall, picture frames, replacement bumpers for display coolers, electrical raceway covers, and many, many others. We are experts at custom plastic extrusion, and have been servicing the industry for more than 47 years.

Give us a call at 614-531-9954 or email at sales@formtech.com for more information or a quotation.

Snippets from the Plastics News Financial Summit in Chicago

On July 12, 2017 | by Formtech | in Blog, Featured News, Industry News

Bill Wood, Plastics News Economic Editor, gave his thoughts regard the economy, and more specifically the state of the plastics industry at the Plastics News Financial Summit in Chicago.

Snippets from Bill’s observations are as follows:

  • US plastics production is at 90% of its pre-recession peakAccountant Opportunity - Formtech Enterprises
  • Durable goods and auto sales are seeing slow growth
  • Retail sales outside automotive are getting back to 4% growth
  • Housing starts, one the bellwether of the economy, are improving, but remain down 40$ from pre-recession peaks
  • The appliance industry is growing at a 5% level

Mr. Wood believes economic growth in the US will remain in the 2% to 2-1/2% range, which will lead the plastics industry to this same type of growth pattern. For the full article, click here.

Formtech is blessed to serve a wide variety of end markets including office furniture, electronics, point of purchase displays, building and construction, packaging and the entrance mat industry with many custom and proprietary extruded shapes. We are enjoying growth in excess of Mr. Wood’s projections, both with existing and new customers. Formtech has been manufacturing custom extruded plastic profiles for more than 47 years, and we are experts in the field of extrusion. We are investing in the company, and have capacity to take on extrusion projects at both our Fairview, Pennsylvania and our Athens, Georgia manufacturing facilities. To learn more about capabilities at either or both of these extrusion manufacturing locations click here for Fairview location and here for the Athens location.

Formtech is just what the doctor ordered, and is accepting new customers

                               Just what the Doctor Ordered

We know how important it is to pick the right partners for the success of your organization. We have along list of client partners who have trusted our company for their custom profile needs for many, many years. We work everyday to maintain the trust of our customers, and work consistently to keep our customers out in front of technology we can bring to them in an ever increasingly competitive world. We believe we are “just what the doctor ordered” when it comes to plastic extrusion, and we have the right people to help with material selection, design for manufacture, tolerance development, and even prototyping. Click on the “Doctor” to learn more about the services we can offer to you as you start to work on your next project.

Give us a call at 614-531-9954 or email at sales@formtech.com for more information or a quotation.