Up, down, high, low. The last year has really been challenging in many ways. The plastics prices have been at an extreme low, which is logical considering the current crisis and low demand and productivity. But, since mid-December last year prices have skyrocketed. The LDPE contract price is a good example where we have seen an increase of +36% (Noveber 2020 February 2021) and the LDPE spot price is +78% in the same period of time. There were many players anticipating an increase at the beginning of 2021, but not in our wildest fantasies we could have guessed this kind of increase.
A steep increase like this will affect the market in a few ways. The demand has been at an extreme low last year, but this has changed to an extreme high and we see serious supply problems in the market. The risk for a big, sudden decrease is obvious. If we see any change, sudden or planned, in supply we will see a rapid reaction in the market. If or when this can occur we don’t know. But, the longer the market can maintain these high price levels the smaller the risk for a sudden drop.
GPS has the regular items in stock and available. Prices are according to current market situation.