Price of plastic materials and resin

The plastic materials and resin price index declined to 319.4 in 2024, representing a 2.6% decrease from the previous year. This decline continues the price normalization trend that began in 2023 following the exceptional price surge during the pandemic recovery period. Supply chain stabilization has contributed to more predictable pricing patterns, while steady demand growth in key end-use sectors has supported gradual price adjustments. Energy cost fluctuations and ongoing trade policy considerations continue to influence pricing volatility in the sector.

Plastic materials and resin prices have experienced significant volatility over the past five years, with the index reaching historic highs before beginning to moderate. The period began with pandemic disruptions in 2020 causing initial price declines to 263.6 as manufacturing demand plummeted. The subsequent recovery period from 2021-2022 witnessed unprecedented price increases, with the index surging to 360.2 in 2022 - the highest level on record. This dramatic increase reflected multiple converging factors including supply chain disruptions, raw material shortages and robust demand recovery across manufacturing sectors.

The price surge was primarily driven by petroleum feedstock cost increases, as crude oil prices rebounded sharply from pandemic lows. Container shipping disruptions and port congestion created additional supply constraints, while semiconductor shortages in automotive and electronics sectors generated unexpected demand patterns. Energy cost increases, particularly natural gas prices essential for petrochemical production, further pressured manufacturing costs throughout the supply chain.

Since 2023, prices have entered a normalization phase, declining from the 2022 peak as supply chains stabilized and demand patterns returned to more predictable levels. The index fell to 327.8 in 2023 before continuing its descent to 319.4 in 2024. Manufacturing capacity expansions and improved logistics networks have helped alleviate some pricing pressures, though the index remains well above pre-pandemic levels. Trade policy developments and geopolitical tensions have continued to influence pricing through their impact on raw material access and supply route reliability.