US Plastics Prices Jump 14%, Threatening Higher Car and Grocery Costs
Updated
Updated · Bloomberg · Jun 12
US Plastics Prices Jump 14%, Threatening Higher Car and Grocery Costs
3 articles · Updated · Bloomberg · Jun 12
Summary
A 14% jump in wholesale plastic resins and materials last month has pushed prices to an almost four-year high, setting up consumer cost increases later this year.
The surge stems from the Iran war, which has choked off supplies of key plastic components and sharply raised raw-material costs across the sector.
US plastic suppliers say they are running out of room to absorb those costs, increasing pressure to pass them through to manufacturers and retailers.
Corry, Pennsylvania-based molder Shawn Gross said the squeeze is nearing a breaking point for producers supplying parts used in autos and heating systems.
That pass-through could lift prices on a wide range of goods, from groceries packaged in plastic to cars that rely on molded components.