Tags won't rise much
By Staff -- Purchasing, 2/12/1998
Polycarbonate tags will rise only slightly, if at all, say buyers. Reasons include healthy but not booming end-use markets and new product introductions. One benefit will be ample supply through year-end.Prices will continue to hold in the upper $1.40s during 1998. High-volume contracts are around $1.35 to $1.45/lb, according to one PM, and truckload orders are near, or slightly above, $1.50/lb. Spot prices have been matching contracts, but this year they may exceed contract prices by about two to three cents, on average.
One PM says that he doesn't expect tags to rise more than 5% at most in 1998. As an example, another purchaser points out that in 1997, even with supply-side pressures, suppliers couldn't push through hikes of 5%.
Tags have been strong due to supply-side pressure and healthy demand among the automotive and appliance industries, and a newcomer, the compact disk industry. Supply-side pressure has been concentrated in carbon fibers, which have been in high demand for aerospace and telecommunications applications, according to PMs.
So far, neither the ongoing strength in demand nor new product applications has resulted in tight supply. And buyers don't expect difficulties in sourcing product this year. However, long term, one PM points out that operating levels are growing due to new product applications, which will eventually result in more supplier price-hike attempts to fund expansions.
Talkback
Related Content
Related Content
Sponsored Links
View All Blogs
Now Playing:
