The year 2024 remained challenging in terms of plastic material availability. The impacts of the war in Ukraine and the conflict in Israel were felt throughout the year, keeping global markets in a state of uncertainty. Although inflation and index-based price increases have begun to stabilize or even decline, high energy prices continue to have an effect, particularly in Europe. For example, while gas prices have decreased, they still remain significantly higher than before the start of the war in Ukraine.
Progress has been made in plastic material pricing: According to price indices, prices finally stabilized toward the end of the year. In 2024, prices continued to decline, suggesting the emergence of a new "normal," even though they remain higher than pre-pandemic levels. Forecasting remains difficult due to ongoing global uncertainties, but we continuously work alongside our customers to minimize the impact on their businesses.
Below, we present a chart illustrating the price development of plastic granulates. The Plastixx Index reflects the overall price trends of all technical plastic granulates.
Overall, material availability has improved significantly compared to 2023. Raw material manufacturers have expanded their product ranges, and previously discontinued "intermediate" products have returned to the market. During the most severe material shortages, the industry focused on maximizing production volumes, leading to a slight oversupply. Throughout 2024, plastic material manufacturers have been balancing their inventory levels, resulting in a gradual decline in prices and improved availability.
Despite the general improvement in plastic material availability, certain speciality plastics, such as PVDF, remain in a challenging position. This is partly due to sanctions on Russia, which have affected the supply of some chemicals essential for plastic production in Europe. Manufacturers have already taken steps to address this issue, but these measures require time and significant investments, including the construction of new production facilities.
We are here to support you with your material needs. We encourage you to reach out directly to our sales team so we can assess your requirements and find the best solutions together.