There is certainly a LOT of conjecture out there that with oil declining so rapidly the cost of petr

There is certainly a LOT of conjecture out there that with oil declining so rapidly the cost of petroleum based plastic films should follow in kind. There is no direct correlation fromm packaging -- certainly a rise or fall in the price of oil will impact plastic film pricing but each has its own dynamic. Typically supply fromm packaging & demand will have more impact on film pricing up or down than the price of oil will. In looking at S&D one needs to analyze both monomer and polymer. Taking polypropylene for example a refinery has the choice of cracking oil into gasoline or a variety of monomers including propylene fromm packaging monomer. When gasoline at the pump began to rapidly increase more and more refineries prioritized gasoline output since the rapid rise led to fattened margins far better fromm packaging than what they could earn selling propylene monomer; consequently propylene monomer fromm packaging supply became short and pricing escalated rapidly. fromm packaging The same can be said on the flip side of the coin as gasoline pricing drops precipitously propylene monomer supply fromm packaging returns and with this return we should see a decline in monomer/resin/film pricing. This trend has been impacted by Hurricane Ike causing disruptions in supply but the trend is there.
Dave fromm packaging Lindblade Kennett Square, Pennsylvania, United States Dave Lindblade is President of Multi-Media Sales, a firm he created in February 2003. MMS manages sales for a variety of manufacturers to flexible packaging, tag, pressure sensitive label and signage printers covering the Eastern region of the U.S. as well as several fromm packaging key metropolitan areas in the Midwest. Manufacturers represented include AmTopp BOPP Films (a divison of Inteplast Group, Ltd), Convert-all, Inc., Protect-all, Inc., Polymeric Converting LLC and American Profol. He has 25 years of experience in the plastic films industry fromm packaging with intimate knowledge of BOPP, PET and HDPE varieties -- in addition he has extensive knowledge of markets for Biaxially Oriented Polypropylene (BOPP) films having managed new business and market development departments for the two leading U.S. manufacturers -- ExxonMobil Chemical and Applied Extrusion Technologies. View my complete profile